Prabhu Bank Limited to Issue Perpetual Non-Cumulative Preference Shares

Prabhu Bank Limited (Prvu) has announced to issue Perpetual Non-Cumulative Preference Shares. The 415th meeting of board of directors of the bank held in Chaitra 27, 2082 has approved the issuance of perpetual non-cumulative preference shares worth Rs. 5 Arba.

According to the decision, the bank will issue 5 crores units of preference shares at a face value of Rs. 100 per share through a private placement, targeting only institutional investors.The proposed dividend rate has been set at 8.50 percent. However, the bank will distribute dividends only in years when it earns profit.

The issuance is subject to approval from the bank’s Special General Meeting and regulatory authorities, including the Nepal Rastra Bank.