NIC Asia floats 7.5% redeemable bond from today

ShareSansar, May 4:

NIC Asia Bank has floated its debentures worth Rs 50 crore at 7.25 per cent interest rate from  today.

The ‘7.5% NIC Asia bond 2077’, which is being issued at the face value of Rs 1,000 per unit will close on May 7, or by May 18 at the latest.

The maturity period of the redeemable bond is six years.

Altogether 10 crore units have been reserved for general public while the remaining 40 crore units will be issued to institutional investors.

Nabil Investment Banking Limited is the issue manager.

ICRA Nepal, the only credit rating agency in the country, has assigned a rating of [ICRANP] LA- rating to the bonds. It suggests that the debentures are safe to invest on.

But it may also be noted that the rating was assigned to the debenture proposed by NIC Bank before it merged with Bank of Asia in July 2013.

It may be noted that this is the second debenture issued by any BFI in the current fiscal year 2070/71.

In March Nepal SBI Bank had issued a ten-year bond worth Rs 20 crore at 7.9 per cent rate.