Kathmandu. NIC Asia Bank Limited is going to open the issuance and sale of debentures from Chaitra 25. The bank is going to issue ‘7 percent NIC Asia Debenture 2091’ at an annual interest rate of 7 percent for a period of 10 years.
The bank is going to issue 5 million units of debentures worth 5 billion rupees at a face value of 1,000 per debenture. Out of this, 60 percent or 3 million units of debentures worth 3 billion rupees will be distributed individually, while the remaining 40 percent or 2 million units worth 2 billion rupees will be distributed to the general public.
Of the debentures to be distributed to the general public, 5 percent or 100,000 units of debentures have been allocated for collective investment funds. Investors will have to apply for a minimum of 25 units and a maximum of 2.5 million units.
In the credit rating conducted for the bond issuance, Infomerics Credit Rating Nepal has assigned the bank an IRN Issuer Rating of Triple B Plus. This indicates that the bond is moderately secure in meeting its financial obligations on time.
The interest accrued on the bond will be paid after deducting taxes after the end of the first fiscal year and the second half of each fiscal year.
Applications for the said bond can be made as early as Chaitra 28th and as late as Baisakh 8th, 2082. The bank’s securities issuance and sale manager is Prabhu Capital Limited.
Investors can apply through the ASBA system through banks and financial institutions participating in the ASBA service approved by the Nepal Securities Board and their designated branch offices, and the software ‘Mero Share’ developed by CDS and Clearing Limited online.
