The debenture will mature in 10 years will yield 11 percent interest payable semiannually.
The bank is issuing one million units of debenture worth Rs 1 billion at a face value of Rs 1,000. Out of total offered units, the bank will issue 40 percent i.e. 400,000 units worth Rs 400 million to the general public and 60 percent i.e. 600,000 units to the private investors.
Out of the general public quota, the bank has allocated 20,000 to the mutual funds, thus, the remaining 380,000 units will be issued to the general public.
Interested investors can apply for a minimum of 25 and maximum of 100,000 units of debentures. The issue now close on June 13.
The bank has appointed Nabil Investment Banking as issue manager.
The investors can apply from all C-ASBA approved BFIs and Meroshare.
ICRA Nepal has assigned BB+ rating to the issue indicating moderate risks.
