Nepal SBI starts refunding non-allottees of Rs 20 crore debenture

ShareSansar, April 22:
 
Nepal SBI Bank Limited has started refunding money to the non-allottees of its ‘7.9 percent debenture 2080’ from today.

The debenture worth Rs 20 crore issued at a face value Rs 1000 per unit from March 31 to April 3, was allotted to the investors on April 20.

NMB Capital is the issue manager.

Out of the total debenture, Rs 1 crore was earmarked to the mutual funds.
 
Similarly, unit bonds worth Rs 16 crore were sold on the basis of private placement and the remaining 13 thousand units of bonds were issued to the general public.
 
The bond has been issued at the interest rate of 7.9 percent, and the interest will be paid semi-annually.
 
Interested individuals and organizations had to bid for at least 25 units of the bond and make the payment in advance.
 
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.