IFIC pays NB Bank share instalment

KATHMANDU, AUG 27 -

The International Finance Investment and Commerce (IFIC) Bank, which aims to acquire a majority stake in Nepal Bangladesh Bank (NB Bank) by purchasing the shares owned by the NB Group, has sent Rs 700 million as the first instalment of the payment.

The IFIC, which currently owns 10 percent of the bank, will buy 29,16,000 shares owned by Manaslu Investment and Capital Investment. The two sides have agreed that the IFIC will purchase the promoter shares for Rs 260 apiece.

“We received the amount on Monday, and we will complete the purchase process within a week,” said NB Bank CEO Gyanendra Prasad Dhungana. With the transfer of the shares held by Manaslu and Capital, 2.5 million shares remain to be sold to the Bangladeshi shareholder.

“To buy them, the IFIC will send more money in the second and third instalments,” said Dhungana. He added that a majority of the shares to be purchased in the latter stages would be those belonging to individuals.

Nepal Rastra Bank has directed that the money received from the Bangladeshi partner should first be used to settle the loans taken by people associated with the NB Group from NB Bank and other banks and financial institutions.

The NB Group is the key promoter of the bank, and decided to sell its shares amid intense pressure from the central bank. “The currently available funds will be adequate to settle a large chunk of the loans of our bank,” said Dhungana.

With the IFIC Bank all set to acquire a majority stake in NB Bank, its share prices have started to rise in recent months. Besides purchasing shares of Nepali promoters, the IFIC will also buy the shares held by another Bangladeshi partner Bank Asia, which has a 15 percent stake in the bank.

Source: The Kathmandu Post