As per the bank, the debenture with 10 years of maturity period will yield 10 percent interest rate payable semi-annually. Out of the total debenture, the bank will distribute debenture worth Rs 1 billion to ordinary investors while the remaining debenture worth Rs 1.50 billion will be privately financed out of which 5 percent has been allocated to mutual funds.
The bank has appointed Kumari Capital as its issue manager. The interested investors can apply for the debenture from C-ASBA approved BFIs and Kumari Capital. The debenture will close early on February 14 and lately on march 11. The investors can apply for a minimum of 25 and a maximum of 1 million units of debentures.
ICRA Nepal has assigned ICRA NP LAA rating to the issue indicating high degree of safety. Securities Board of Nepal (SEBON) approved the debenture issue on January 12.