“10.5% SBL Debenture 2082” awaits final approval from SEBON; SBL looking to raise debt worth 2.25 Arba from the issue

Siddhartha Bank Limited (SBL) will be issuing Rs.2.25 Arba worth of debentures for increasing its capital adequacy ratio as well as for market expansion.

The bank will be issuing 22.5 Lakh unit debentures at Rs.1,000 per unit. The debenture will yield 10.5% interest annually.

NIBL Ace Capital has been appointed as the issue manager for the debenture issuance.

Out of the total debentures, 20% of the issue (i.e. issue of Rs.45 Crore) is being issued for the general public. And the remaining 80% will be privately placed to individuals and institutions.

“10.5% SBL Debenture 2082” hasn’t received the final approval from SEBON yet. The date of application of the issue was on 19^th Bhadra, 2075 after which comment was sent on 25^th Ashwin, 2075 and was replied on 6^th Kartik, 2075.

The debentures can be a great offer for the investors targeting towards long-term investment as the debentures provide 10.5% interest while the bank interest rates stand around 7% in the present context.

In the recent period, it has been seen that the commercial banks have been focusing on the issuance of debentures for generating the required funds.