“10% Sunrise Debenture 2080” receives final approval from SEBON; 10 Lakh units worth Rs.1 Arba to be issued soon

Securities Exchange Board of Nepal (SEBON) has provided final approval to the debenture issue of Sunrise Bank “10% Sunrise Debenture 2080”.

Sunrise Bank (SRBL) is looking to issue 10 Lakh units of debenture at par to raise debt worth Rs.1 Arba. As per the information published by SEBON, the bank will be issuing 4 Lakh units (40%) to the general public while remaining 6 Lakh units (60%) will be privately placed. The annual yield on these debentures are 10%. The maturity period of these debentures is 5 years.

Prabhu Capital Limited has been appointed as the issue manager for the debenture issue.

Debentures are a means to safeguard the investors against fluctuating interest rates in the long run. These debt instruments enable the banks to raise additional capital. But lately, the debentures are not being able to attract investors as expected by the banks.