Kathmandu. Nabil Bank is going to open the issue and sale of debentures from July 15. The bank is issuing ‘7 percent Nabil Debenture 2089’ at an interest rate of 7 percent per annum for a period of eight years.

The bank is issuing three million units of debentures worth Rs 3 billion at a face value of Rs 1,000 per unit. Out of this, 60 percent i.e. 1.8 million units of debentures worth Rs 1.8 billion will be distributed individually. The remaining 40 percent i.e. 1.2 million units worth Rs 1.2billion will be allotted to the general public. 5% i.e. 60,000 units of debentures have been set aside for mutual funds.

Investors will have to apply for a minimum of 25 units of shares. Similarly, applications can be made for all units of shares. The issue will be closed at the earliest on July 15 and the late one will be on August 15.

Nepal SBI Merchant Banking Limited is the issue manager of the bank. Investors can apply through the C-ASBA system from the banks and financial institutions participating in the ASBA service approved by the Securities Board of Nepal and their designated branch offices.

ICRA Nepal has given ICRANP Issuer Rating A to the bank in the credit rating for the issue of debentures. This indicates that there is sufficient amount of security in terms of meeting financial obligations on time. The interest earned on the bond will be paid after deducting taxes after the end of the first financial year and the second half of each financial year.