Bank of Kathmandu Lumbini appoints Nabil Investment Banking as issue manager for upcoming 62.08 lakh units FPO

Bank of Kathmandu Lumbini Limited (BOKL) has appointed Nabil Investment Banking Limited as the issue manager for its upcoming FPO for promoters. Mr. Ajay Shrestha, CEO of BOKL and Mr. Prabin Raman Parajuli, CEO of Nabil Invest signed the agreement today. After the merger of Bank of Kathmandu and Lumbini Bank, the promoter ownership of the merged bank was reduced to 45.64%. BOKL is issuing further 62,08,132 units promoter shares to maintain its promoter-public shareholding structure at 51:49. BOKL’s 22nd AGM conducted on March 22, 2017 had endorsed the agenda to issue FPO of promoter shares. After the issuance of 62.08 lakh units FPO shares for promoters, its paid up capital will reach Rs 6.24 arba with 51% promoter ownership and 49% general public ownership. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, BOKL will need to issue a further capital hike of around 28%. Existing promoters of BOKL and general public those who meet NRB's eligiblity criteria for promoters are eligible to apply for the FPO.