NMB Bank also gets in line to issue debentures worth Rs 3 arba; Commercial Banks preparing for possible liquidity crunch?

NMB Bank Limited is set to issue debenture worth Rs 3 arba. The commercial bank has already received approval from Nepal Rastra Bank to issue the debentures.

The debentures will be issued after approval from Securities Board of Nepal. The said debentures will be issued with maturity period of 7 years while the interest rate has not been fixed as of yet.

The attraction of commercial banks in the debentures has been quite high in the recent period.

In SEBON’s pipeline, debentures from 3 banks i.e. NIC Asia, Sanima Bank and Siddhartha Bank have already got approval. Among these, Siddhartha Bank '10.5% SBL Debenture 2085' will issue soon. Sanima Bank '10% Sanima Debenture 2085' issue is ongoing since Kartik 30; NIC Asia bank Rs 1.83 arba worth debenture issue already got fully subscribed on 27th Bhadra, 2075.

Along with these banks, Citizens Bank International is set to issue ’Citizens Bank Bond 2085’ with a total worth of Rs 2.50 arba and NIC Asia Bank '11% NIC ASIA Debenture 2085-86' of Rs 4 arba worth too will come soon.

The banks can easily generate investable funds through the issue of debentures due to which most fo the banks have been seen adopting the measure.