KATHMANDU: Rastriya Banijya Bank Limited (RBBL) is set to issue and issue debentures worth Rs 3 billion from October 12. The bank is going to issue ‘6 per cent RBBL Debenture 2089’ with a tenure of 6 per cent per annum with a maturity period of 7 years.

The bank is issuing a total of 30 lakh units of debentures with a face value of Rs 1,000 each. Out of the total issue, 60 percent i.e. 1.8 million units of debentures worth Rs 1.80 billion will be issued individually.

Similarly, the remaining 40 percent i.e. 1.2 billion units of debentures worth Rs 1.20 billion will be issued to the general public. Out of the debentures allotted to the general public, 5 percent i.e. 60,000 units have been set aside for mutual funds.

Investors interested in investing in the debentures will have to apply for a minimum of 25 units. The maximum number of shares can be applied for.

The issuance of the bonds will close on October 26. If there are not enough applications by that period, the issue will be open till October 25. Kumari Capital Limited has been appointed as the issue manager for the issue.

Investors can apply for the C-ASBA service approved by the Securities Board of Nepal through the designated branch offices of participating banks and financial institutions. In addition, applications can also be made using the C-ASBA system through the ‘Mero Share’ online system operated by CDS and Clearing Limited.

CARE Ratings Nepal has assigned ‘CareNP Single A Plus Issuer Rating’ to Rastriya Banijya Bank in the credit rating conducted for the issuance of bonds. This rating indicates that the bank is sufficiently secure to meet its financial obligations on time.

The interest earned from this bond will be paid by deducting tax at the end of the first half-yearly and second half-yearly period of each financial year. Investors investing in this bond with a tenure of 7 years will get interest at the rate of 6 percent per annum.