NIFRA Clarifies About Bond Listing in London Stock Exchange: "Investors Knew About it the Whole Time!"

Sun, Mar 21, 2021 12:03 PM on Stock Market, Latest,

Amidst the spread of sensitive news about Nepal Infrastructure Bank Limited (NIFRA) that can potentially affect market sentiment, the exchange had demanded clarification from the company regarding a number of issues.

It was reported by a few news portals that the company was now preparing to issue a bond worth 30 million US dollars and that the bond was to be listed in the London Stock Exchange. It was also reported that the company was all set to issue the bond in this fiscal year itself with an annual return of 8.5%.

Responding to this, the CEO of the company himself has written a letter to the exchange. Company CEO Ramkrishna Khatiwada has stated that the information that NIFRA will issue a bond at the specified exchange was already made public, as early as in the IPO description letter itself. The company is preparing to issue the bond as early as possible at a feasible rate, although Khatiwada did not mention that the bond will be issued with a promised annual return of 8.5%.

Furthermore, the company has been subject to numerous news and speculation from investors and news portals, some authentic and some shady. For instance, it is also widely circulated in the investors' community that the company is planning to distribute a 10% dividend from its profit.

Responding to this, Khatiwada stated that the company has only projected a dividend distributed capacity of 8% for FY 2077/78, which was already mentioned in the description letter itself. The letter clarifies that it is the company's pre specified objective to issue bonds so that it can invest in infrastructure projects. As such, the letter states that the company is careful about news affecting its stock price and that it is carrying out its procedures within the rules.