Nepal Investment Bank set to issue 2 million units of “10.5% Nepal Investment Debenture 2082” from 24th Jestha, 2076 at par value

Nepal Investment Bank Limited (NIB) has published an offer letter, inviting applications for its “10.5% Nepal Investment Debenture 2082”.

The applications for the debenture issue will be open from 24^th Jestha, 2076 (7^th June, 2019). The early closing of the issue is on 28^th Jestha, 2076. If the issue is not fully subscribed till the early closing, it can be extended up to 22^nd Asadh, 2076.

NIB is issuing 20 lakh units debenture at par value of Rs.1000 each to raise debt worth Rs.2 Arba. The debentures will offer an interest rate of 10.5% p.a. and will mature in a period of 7 years. Out of the total units, 800,000 units will be offered to the general public will remaining 1,200,000 units will be privately placed. Amongst the units offered to the general public, 5% i.e. 40,000 units have been reserved for mutual funds.

Siddhartha Capital Limited has been appointed as the issue manager for the debenture issue.

Applications can be placed for minimum 25 units and maximum 100,000 units.

ICRA Nepal has assigned [ICRANP] LA+ to the proposed subordinated debenture program of Nepal Investment Bank Limited (NIBL). Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk. ICRA Nepal has reaffirmed the issuer rating for NIBL at [ICRANP-IR] A+. The rated entity carries average credit risk.

NIB had previously issued “8% Nepal Investment Bank Bond 2077” worth Rs.50 Crore and “8% Nepal Investment Bank Bond 2078” worth Rs.75 Crore.