"NIBL Growth Fund (NGF)" Opens From Today; All information You Need To Know In One Place

Company Profile

The mutual fund scheme "NIBL Growth Fund (NGF)" is promoted by Nepal Investment Bank Limited and managed by NIBL Ace Capital.

Nepal Investment Bank Limited, previously Nepal Indosuez Bank Limited, was established in 1986 as a joint venture between Nepalese and French partners. The French partner, Credit Agricole Indosuez (holding 50%), sold its stake to a group of companies comprising Nepalese bankers, professionals, industrialists, and businessmen in April 2002. The name was then changed to Nepal Investment Bank Limited. It is promoted by a large number of institutions with the largest stake held by Rastriya Beema Company Limited along with other insurance companies, retirement funds, and investment companies. The bank’s shares are listed on the Nepal Stock Exchange. The registered office is in Durbarmarg, Kathmandu.

NIBL Capital Markets Limited was renamed to NIBL Ace Capital Limited post the merger with Ace Capital Limited on February 2018. It is licensed by the Securities Board of Nepal (SEBON) to work as an investment banker and as a merchant banker. NIBL Ace has obtained a depository participant’s license in addition to a fund manager’s license from SEBON and is currently acting in both capacities for its three MF schemes. The company reported a net profit of ~NPR 136 million in FY2021 (~115% YoY growth) over an asset base of NPR 1,872 million as of mid-July 2021.

About the issue

NIBL Ace Capital Limited is issuing the closed-ended mutual fund scheme "NIBL Growth Fund" from today i.e. on 7th Poush and close on 12th Poush, 2079. If not subscribed fully by the early closing date, the issue can be extended till Poush 21.

16 crore unit shares will be issued at a par value of Rs. 10 per unit. 19% of the total units i.e. 3.04 crore units worth Rs. 30.4 crores have been allocated to the fund promoter Nepal Investment Bank Limited whereas 1% of the total units i.e. 16 lakh units have been allocated to the fund manager NIBL Ace Capital Limited. Thus, the remaining 12.80 crore units will be allocated to the general public.

"NIBL Growth Fund" is a closed-ended fund, meaning it can be traded in NEPSE. The fund has a maturity period of 10 years. Applicants can apply for a minimum of 100 units to a maximum of 1.6 crore units.

Currently, NIBL Ace Capital is managing two closed-end funds i.e NIBL Pragati Fund (NIBLPF) and NIBL Samriddhi Fund - 2 (NIBSF2), and one open-end fund NIBL Sahabhagita Fund (NIBLSF) in the market.

Offer Letter

NIBL Growth Fund
Fund Size Rs. 1.60 Arba
Per Unit Price Rs. 10
Total Units 16,00,00,000
Fund Sponsor Nepal Investment Bank
Fund Manager and Depository NIBL Ace Capital
Seed Fund by NIBL Bank - 19% (units) 3,04,00,000
Seed Fund by NIBL Ace Capital - 1% (units) 16,00,000
General Public (units) 12,80,00,000
Nature of Scheme Closed-ended Fund
Fund Maturity 10 years
Minimum units to be applied  100
Maximum units to be applied 1,60,00,000
Issue open date 7th Poush
Issue closing date (earliest) 12th Poush
Issue closing date (latest) 21st Poush
ICRA rating of NIBL Bank [ICRANP-IR] A
ICRA rating of NIBL Ace Capital [ICRANP] AMC Quality 3+
Minimum units that need to be sold  8,00,00,000
Maximum units that can be extended 20,00,00,000

Dividend Payout

The dividend will be paid out of realized profits in proportion to investments made on a yearly basis. The Retained earnings will be re-invested if any.

Supervisors of NGF:

S No. Name Qualification
1 Mr. Bimal Prasad Koirala P.H.D (Economics)
2 Mr. Shambhu Ram Simkhada P.H.D (International Relations)
3 Mr. Durgesh Man Singh P.H.D (Economics)
4 Mr. Jitendra Bahadur Rajbhandari CA/F.C.A.
5 Mr. Raju Nepal Post Graduate, Management

The capital structure of NIBL Ace Capital:

Particulars Amount
Authorized Capital Rs. 50 Crores
Issued Capital Rs. 27 Crores
Paid-up Capital Rs. 27 Crores

Board of directors:

S. No Name Position
1 Mr. Sachin Tibrewal Chairman
2 Mr. Deepak Kumar Shrestha Director
3 Ms. Srijana Pandey Director
3 Mr. Rabindra Bhattarai Independent Director
4 Mr. Ananda Kumar Bhattarai Independent Director

General Asset Allocation of the proposed scheme's portfolio:

S.N. Type of Instrument Normal Allocation (of Net Assets)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1) Fixed income 30% 30% 30% 30% 30% 30% 35% 40% 40% 85%
2) Investment in Ordinary shares 55% 55% 65% 65% 65% 65% 60% 55% 55% 10%
3) Operating Income 15% 15% 5% 5% 5% 5% 5% 5% 5% 5%
  Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Investment Avenues:

  • Securities that are registered with SEBON.
  • Securities called for a public offering.
  • Securities that are listed in NEPSE.
  • Debentures, Treasury Bills, and other instruments of the money market issued by the Government of Nepal or Government Agencies receiving full guarantee or protection of GoN or NRB.
  • Bank deposits.
  • Money Market Instruments.
  • Other areas as prescribed by SEBON.

ICRA Rating (Nepal Investment Bank & NIBL ACE Capital): 

1. Nepal Investment Bank:

ICRA Nepal has placed the issuer rating of [ICRANP-IR] A& (pronounced ICRA NP issuer rating A), assigned to Nepal Investment Bank Limited (NIBL), on ‘Watch with Developing Implications’. The rating indicates an adequate degree of safety regarding the timely servicing of financial obligations. Such issuers carry low credit risk.

Key Strengths:
  • Long track record; experienced directors/management team.
  • Comfortable capitalization profile.
  • Competitive funding profile among top-tier banks.

Key Challenges:

  • Modest asset quality.
  • Moderation in profitability.
  • Uncertain operating environment.

2. NIBL Ace Capital:

ICRA Nepal has reaffirmed the fund management quality rating (FMQR) of [ICRANP] AMC Quality 3+ (pronounced ICRA NP asset management company quality three plus) to NIBL Ace Capital Limited (NIBL Ace or the company). The rating indicates an adequate assurance of management quality.

Key Strengths:

  • Decent fund performance so far.
  • Fair track record in fund management.
  • Strong ownership profile.
  • Experienced fund supervisors and management team.
  • Regulatory support for the development of the MF industry and financial markets.

Key Challenges:

  • A volatile operating environment could impact NAV trajectory.
  • Sectoral concentration risks developing the stage of the mutual fund industry.
  • Developing stage of the mutual fund industry with moderate attraction among investors.
  • Limited investment diversification avenues so far; are expected to gradually improve. 

Click here to view the prospectus

Click here to view the offer letter