Himalayan Bank issuing Rs 75 crore debentures at 8%

ShareSansar, June 21

Himalayan Bank will issue Rs 75 crore worth of debentures starting from June 30.

The bank will pay 8 percent interest on the debentures with par value at Rs 1000 and a maturity period of 7 years.

Out of the total bonds issue, general public can apply only for 15 crore bonds. Of the remaining 60 crore, Rs 3 crore 75 lakh worth of debentures have been set aside for mutual funds. The bank plans to sell the rest of the debentures on an individual basis.

Interested investors will have to apply for a minimum of 25 units.

The bank has appointed Ace Capital Limited as issue manager for the debentures.

The debentures can be used for taking out loans by keeping them at any bank or finance institution in future after it gets listed in the secondary market of Nepal. Once listed at NEPSE, it can also be traded at the local bourse.

The bank issued the debentures because of the decline in its capital adequacy ratio. The bank’s profit has been increasing lately, but due to its low capital adequacy ratio which is currently stands 11.03% as of 3rd quarter of FY 2069/70, it is compelled to issue such debentures to the general public. This issue would help the bank to maintain its capital adequacy ratio as per the NRB guidelines which is 11%. The bank posted a profit of Rs 71 crore 80 lakh in Chaitra. It has disbursed Rs 40 arba 18 crore as loans.