Nepal Bank to issue rights share

KATHMANDU, APR 24:

Securities Board of Nepal (Sebon) has approved the issuance of rights shares of Nepal Bank.

"We are planning to issue rights shares worth Rs 3.61 billion by mid-May," said

coordinator of the management team of Nepal Bank Maheshwor Lal Shrestha. "After the rights shares are issued, the bank's paid up capital will be Rs four billion. At present, its paid up capital stands at Rs 380 million."

It is planning to issue 1:9.5 times rights share under its recapitalisation plan. "The government has already paid Rs 1.37 billion as its rights share," he said, adding the government has 40.49 per cent share. "The bank's employees have also paid their sum for the rights shares."

The bank is in final talks with its issue and sales manager — Citizen Investment Trust. "Immediately after issue manager's nod, we will go for the issue," he said. It had recently — after nine years — relisted its 3.83 million shares at Nepal Stock Exchange. The bank is under direct control of central bank that recently extended management control for nine more months to complete recapitalisation process.

Source: THT