NIC Asia to float Rs 50 crore debenture at 7.25% interest rate

ShareSansar, April 9:

NIC Asia Bank Limited is about to float a debenture of Rs 50 crore at a very attractive interest rate of 7.25 percent per annum.

The Securities Board of Nepal has already given its approval of the debenture named ‘NIC Asia Bank 2077’, which is being floated at Rs 1,000 per unit.

The debenture is expected to hit the market by Baisakh, according to knowledgeable sources. The maturity period will be seven and a quarter years.

Altogether five percent of the debenture will be earmarked for the mutual funds.

The interested investor has to apply for a minimum of 25,000 units.

It may be noted here that though ICRA Nepal had given LA Minus 1 A (LA-) rating to the issue, the rating was done before NIC and Bank of Asia had finalized their merger.

The merger process also delayed the issuance of debenture.

NIC Asia is floating the debenture meet the central bank’s directive to raise its capital adequacy ratio to 10 percent.