’10.5% NIB Debenture 2082’ receives 500 applicants from general public; issue for private placement oversubscribed

Fri, Jun 14, 2019 2:26 PM on Bonds & Debentures, Latest,
’10.5% NIB...

Nepal Investment Bank Limited (NIB) is issuing ’10.50% NIB Debenture 2082’ from 24th Jestha, 2076 (7th June, 2019). The early closing of the issue was on 28th Jestha, 2076. Since the issue was not fully subscribed till the early closing, it was extended up to 30th Asadh, 2076.

NIB is issuing 20 lakh units debenture at par value of Rs.1000 each to raise debt worth Rs.2 Arba. The debentures will offer an interest rate of 10.5% p.a. and will mature in a period of 7 years.

Out of the total units, 800,000 units was offered to the general public while remaining 1,200,000 units was privately placed. Among the units offered to the general public, 5% i.e. 40,000 units had been reserved for mutual funds.

Siddhartha Capital Limited has been appointed as the issue manager for the debenture issue. As per the issue manager, from the general public, 500 applications have been received with total collection of Rs.14 Crore 12 Lakhs and 88 Thousand. Similarly, for private placement, 17 applications have been received with total collection of Rs.1.99 Arba. However, this data includes invalid applicants. The final data will be available by Sunday.

Applications can be placed for minimum 25 units and maximum 100,000 units.

ICRA Nepal has assigned [ICRANP] LA+ to the proposed subordinated debenture program of Nepal Investment Bank Limited (NIBL). Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk. ICRA Nepal has reaffirmed the issuer rating for NIBL at [ICRANP-IR] A+. The rated entity carries average credit risk.