SEBON Approves Issuance of Kamana Sewa Bikas Bank’s Preference Shares

The Securities Board of Nepal (SEBON) has granted approval to Kamana Sewa Bikas Bank for the issuance of 35 lakh non-redeemable cumulative preference shares with a par value of Rs. 100 and a 9% dividend rate. The proposal, endorsed by the bank’s 18th Annual General Meeting and later cleared by Nepal Rastra Bank, has now received the regulatory green light from SEBON.

According to the bank, the issuance will strengthen its capital base and support broader business expansion by enhancing its capital adequacy position. With current market liquidity conditions and prevailing returns, the bank believes that the 9% dividend rate makes this preference share an appealing option for institutional investors.

Nepal Rastra Bank had recently allowed banks and financial institutions to issue non-redeemable cumulative preference shares as an alternative to rights shares for capital augmentation. SEBON’s approval of Kamana Sewa’s issuance marks a meaningful step in translating this policy into practice.