Nepal SBI floats debenture of Rs 20 crore at 7.9% interest rate

ShareSansar, March 31:
 
Nepal SBI Bank Limited is issuing '7.9 percent debenture 2080’ from today.
 
The joint venture commercial bank has stated that of the total bond worth Rs 20 crore being issued at a face value Rs 1000 per unit, units of the bond worth Rs 1 crore has been earmarked for the mutual funds.
 
Similarly, unit bonds worth Rs 16 crore is being sold on the basis of private placement and the remaining 13 thousand units of bonds is issued to the general public.
 
The bond is being issued at the interest rate of 7.9 percent, and the interest will be paid semi-annually.
 
Interested individuals and organizations have to bid for at least 25 units of the bond and make the payment in advance.
 
The bank will close the issue on April 3 at the latest or by May 1 at the most.
 
The maturity period is ten years from the date of allotment of the bond.
 
Since the bond amount will be fully refunded to the buyers at the end of the maturity period, it will not be converted to ordinary shares, the bank has further clarified.
 
The bank has made a provision of Debenture Redemption Reserve for the refund.
 
ICRA Nepal had recently given ICRANP LAA credit rating to the subordinate bond, which is a very good credit rating.