Allotment of “10.25% NBBL Debenture 2085” concludes; 1.14 lakh units alotted for general public and 18.85 lakhs in private placement

Nepal Bangladesh Bank Limited (NBB) has completed the allotment of “10.25% NBBL Debenture 2085” today.

The commercial bank had issued 8 lakh units i.e. 40% for the general public and remaining 12 lakh units i.e. 60% of the issue was for private placement. Out of public quota of 8 lakh units; 5% i.e 40,000 units was set aside for mutual funds.

The debenture will be providing 10.25% return on the investment which will be paid semi-annually and this debenture matures in 10 years.

Nabil Investment Banking Limited has been appointed as the issue manager for the debenture issuance.

As per the issue manager, Rs 11 crore 47 lakh 78 thousand worth of debenture has been allotted to General public, while debentures worth Rs 1 arba 88 crore 52 lakh 22 thousand has been alloted for private placement.

The issue had received 834 applicants applying for 126,928 units of debentures from the general public till the closing date. However, 139 applications have been disqualified for various reasons and the remaining 695 applicants have been allotted in full amount they had applied for.

Similarly, for private placement a total of 27 applications were received and combining the unalloted units of public category along with the 12 lakh units separated for Private placement, they were alloted 18 lakh 85 thousand 222 units.

ICRA Nepal has assigned [ICRANP] LBBB+ to the proposed subordinated debenture program of NBB. Instruments with this rating are considered to have a moderate degree of safety regarding the timely servicing of financial obligations. Such instruments carry moderate credit risk.