Kathmandu. Securities Board of Nepal (SEBON) has granted permission to Kamana Sewa Bikas Bank Limited (SEBON) to issue 3.5 million units of unissued unsecured preference shares at a dividend rate of Rs 100. The 18th Annual General Meeting (AGM) of the development bank has approved the proposal to issue preference shares and submitted it to the Securities Board of Nepal (SEBON) for approval with the approval of Nepal Rastra Bank.
With the issuance of the preference shares, the capital structure of the development bank will be further strengthened and the capital fund will increase and business expansion opportunities will increase. Given the current liquidity situation and the rate of return, a preferential dividend of 9% to institutional investors would be an appropriate way to invest in shares.
Nepal Rastra Bank (NRB) has issued a circular to banks and financial institutions (BFIs) to issue unreleased unsecured preference shares as an alternative to right shares to consolidate their capital fund.
