List Of Upcoming Debentures In Nepal

November 4, 2020 | Investopaper

With the new provision introduced by Nepal Rastra Bank regarding the debenture, banks have become aggressive towards debenture issuance. As per the NRB directive through the monetary policy of FY 2019/20, commercial banks should issue debenture equal to the minimum of 25 percent of its paid-up capital.

Debentures Already Listed And Trading In Nepal Stock Exchange (NEPSE)

The table below shows the list of debentures that have already been issued to the general pubic and listed in Nepal Stock Exchange (NEPSE).

S.N. Debenture Name Debenture Symbol
1 10 % NMB DEBENTURE 2085 NMBD2085
2 10% Himalayan Bank Debenture 2083 HBLD83
3 10% Nabil Debenture 2082 NBLD82
4 10% Nepal SBI Bank Debenture 2086 SBIBD86
5 10% Prabhu Bank Debenture 2084 PBLD84
6 10% Sunrise Debenture 2080 SRD80
7 10.25% Citizens Bank Debenture 2086 CIZBD86
8 10.25% GLOBAL IME BANK LTD. DEBENTURE 2080/81 GBD80/81
9 10.25% KBL Debenture 2086 KBLD86
10 10.25% NBBL Debenture 2085 NBBD2085
11 10.25% NIC Asia Debenture 2083/84 NICD83/84
12 10.25% Prabhu Bank Debenture 2086 PBLD86
13 10.25% SBL Debenture 2083 SBLD83
14 10.25% Sunrise Bank Debenture 2083 SRBLD83
15 10.5 % NEPAL INVESTMENT DEBENTURE 2082 NIBD2082
16 10.50% SBL Debenture 2082 SBLD2082
17 11% NIC Asia Debenture 082/83 NICAD8283
18 8% BOK Debenture 2079 BOKD2079
19 8% EBL Debenture 2078 EBLD2078
20 NIC Asia Debenture 2081/82 NICAD8182
21 NIC Asia Debenture 2085/86 NICAD 85/86
22 Sanima Bank Limited Debenture SAND2085


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Companies Issuing Debentures

Following NRB guidelines, several commercial banks have already issued the debenture. Likewise, 9 banks and financial institutions are in the process to issue debentures to the general public. These BFIs have submitted an application to the Securities Board of Nepal (SEBON) to issue the debenture. They are on the waiting list for the debentures. These BFIs are planning to raise long term funds for investment through the issue of debentures.

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Upcoming Debentures In Nepal

The table below shows the list of upcoming debentures in Nepal:

S.N. Issuer BFIs Amount of Issue (Rs. In Arba) Debenture 
1 Sanima Bank 4 8.25%, 10 years, Sanima Debenture 2086
2 Nepal Investment Bank 4 8.5%, 7 years,Nepal Investment Bank Bond 2084
3 Prime Commercial Bank 3.5 8 years, 8.75% Prime Debenture 2085
4 NCC Bank 3 10.5%, 10 years, NCC Rinpatra 2086
5 Global IME Bank 3 8.5%,10 years, Global IME Bank Ltd. Debenture 2086/87
6 Century Commercial Bank 2.2 9%,10 years,Century Debenture 2087
7 Bank Of Kathmandu 1.6 8.25%, 10 years, BOK Debenture 2086
8 Kamana Sewa Bikas Bank 1 10 years, 9.5% kamana Sewa Bikas Bank Ltd Debenture,2087
9 Manjushree Finance 0.5 9.5%,8 years, Manjushree Finance Ltd. Debenture 2085

 

Conclusion

As debenture provides secured long term funds to the banks, more and more commercial banks of Nepal are issuing debenture to strengthen their financial condition. A total of Rs. 22.8 Arba is set to be collected by these banks  and financial institutions through the issue of the debentures. Sanima Bank and Nepal Investment Bank are planning to collect the highest Rs. 4 Arba. Likewise, Prime Commercial Bank will collect only Rs. 3.50 Arba by paying 8.75 percent on its debenture for a period of 8 years.

From the point of view of investors, the upcoming debentures of these banks can be a good place to park the money for medium to long periods of time. All the upcoming debentures will provide a return from 8 to 10.50 percent for a period of 7 to 10 years. Debentures are relatively low-risk investment vehicles that provide a good return to those investors more focused on safety. A portfolio of stocks mixed with debentures can balance the risk and return of that portfolio. So, if you are a long term investor seeking safety as well as a good return on your portfolio, then including some portion of your investment amount on the debentures can be a wise investing strategy.

Read Related Contents: 

5 Reasons Why Debentures are Unpopular in Nepal?

 

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One thought on “List Of Upcoming Debentures In Nepal

  • October 2, 2020 at 4:56 am
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    Upcoming debenture vaneko Everest bank debt ani aru sanima ncc debenture chai kaila aaune ho ki expire vaesakeko ho?answer dinunsna hai.

    Reply

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