Debenture Issue Added to SEBON's Pipeline; These Five Banks Aiming to Float Debenture in Near Future

Securities Exchange Board of Nepal (SEBON) has added debenture issues of four commercial banks and one development bank under preliminary review in the latest list of Debenture Pipeline Status published. The total size of Debenture issue of all 5 companies is Rs 14.10 billion. 

Prime Commercial Bank's (PCBL) “10.15% Prime Debenture 2084”, Siddhartha Bank’s (SBL) “10.75 % SBL Debenture 2089”, Bank of Kathmandu's (BOKL) "10.5% BOK Debenture 2086", Nepal SBI Bank's (SBI) "9.25% Nepal SBI Bank Debenture 2083" and Kamana Sewa Bikas Bank's (KSBBL) " 9% KSBBL Debenture 2088" have been added under preliminary review by the board.

Prime Commercial Bank has proposed to issue 50 lakhs units at par value of Rs.1000 per unit to raise debt worth Rs. 5 Arba. The debentures will provide an interest of 10.15% p.a. and will mature in a period of 5 years. Out of the total units, 20,00,000 units will be offered to the general public will remaining 30,00,000 units will be privately placed. Sanima Capital Limited has been appointed as the issue manager for the debenture issue.

Whereas, Siddhartha Bank has proposed to issue 40 lakhs units at par value of Rs.1000 each to raise debt worth Rs. 4 Arba. The debentures will offer an interest rate of 10.75% p.a. and will mature in a period of 10 years. Out of the total units, 16,00,000 units will be offered to the general public will remaining 24,00,000 units will be privately placed. Kumari Capital Limited has been appointed as the issue manager for the debenture issue.

Similarly, Bank of Kathmandu has proposed to issue 11 lakhs units at par value of Rs.1000 each to raise debt worth Rs. 1.10 Arba. The debentures will offer an interest rate of 10.5% p.a. and will mature in a period of 7 years. Out of the total units, 440,000 units will be offered to the general public will remaining 660,000 units will be privately placed. NIBL Ace Capital Limited has been appointed as the issue manager for the debenture issue.

Correspondingly, Nepal SBI Bank has proposed to issue 30 lakhs units at par value of Rs.1000 each to raise debt worth Rs. 3 Arba. The debentures will offer an interest rate of 9.25% p.a. and will mature in a period of 5 years. Out of the total units, 12,00,000 units will be offered to the general public will remaining 18,00,000 units will be privately placed. Sanima Capital Limited has been appointed as the issue manager for the debenture issue.

Likewise, Kamana Sewa Bikas Bank has proposed to issue 10 lakhs units at par value of Rs. 1000 each to raise debt worth Rs. 1 Arba. The debentures will offer an interest rate of 9% p.a. and will mature in a period of 10 years. Out of the total units, 400,000 units will be offered to the general public will remaining 600,000 units will be privately placed. NIBL Ace Capital Limited has been appointed as the issue manager for the debenture issue.