KATHMANDU: Rastriya Banijya Bank (RBB) has opened the issuance and sale of debentures worth Rs 3 billion from today.

The bank has issued ‘6% RBBL Debentures 2089’ for a period of seven years. The interest rate will be 6% per annum.

The bank has issued 30 lakh units of face value of Rs 1,000 per issue. Out of the total issue, 60 per cent i.e. 18 lakh units worth Rs 1.80 billion will be sold individually. The remaining 40 per cent i.e. about 1.2 million units worth Rs 1.20 billion will be allotted to the general public.

Out of the debentures allotted to the general public, 5 percent i.e. 60,000 units have been reserved for mutual funds. Accordingly, ordinary investors can apply for 11.40 lakh units. Those interested in investing in bonds will have to apply for a minimum of 25 units and can apply for a maximum of all units. Applications can be submitted till October 26.

Kumari Capital has been appointed as the issue manager for the issue and sale of the bonds. Investors can apply through C-ASBA member banks and financial institutions or through the My Share system. Rastriya Banijya Bank is a wholly government-owned bank.