IPO for "NIC Asia Dynamic Debt Mutual Fund" Opens From Today: Fund to invest exclusively on credit instruments

The IPO of "NIC Asia Dynamic Debt Mutual Fund" has opened from today, i.e. Mangsir 12.

While the mutual fund schemes in Nepal invest primarily in equities, with NIBL Sahabhagita Fund investing in both equities and debt, the "NIC Asia Dynamic Debt Mutual Fund" will invest exclusively on debt instruments, i.e. debentures.

From the total of 5 crores units, 15% is for the issue promoter NIC Asia Bank itself. The remaining units are open in the IPO issue.

The IPO is open to the general public. One can apply for a maximum of 50 lakh units with a par value of Rs. 10 each. Meanwhile, applications must be for a minimum of 100 units.

If fully subscribed, the issue will close on Mangsir 16. Otherwise, the closing date can be extended to Mangsir 26.

With this open-ended mutual fund scheme, the merchant bank aims to promote the ongoing efforts of different BFIs that have been issuing a number of debenture programs into the market. It also aims to minimize the risks since investments in debentures are considered more immune to drastic downfalls like in the equity market.

As of now, NIC Asia Capital manages two close-ended mutual funds: the NIC Asia Growth Fund (NICGF) and NIC ASIA Balanced Fund (NICBF). The former gave a 12% cash dividend for the fiscal year 2076/77 while the latter gave 8%.

Furthermore, "NIC Asia Select - 30", another mutual fund scheme of NIC Asia Capital is also under SEBON's preliminary review. If approved, this fund will invest in 30 debentures.

Offer Letter