ICFC Finance debenture approval granted by SEBON for 8% debenture issue
5th February 2026, Kathmandu
The Securities Board of Nepal (SEBON) has formally granted the ICFC Finance debenture approval, marking a significant milestone for the finance company’s capital management strategy. On Magh 21, 2082 (February 4, 2026), the regulatory body gave the final nod for the issuance of “8% ICFC Finance Limited Debenture 2089.” This approval allows ICFC Finance Limited to enter the debt market to raise 500 million rupees in long term capital, providing a stable alternative to traditional deposit based funding.
ICFC Finance debenture approval
The issuance is part of a broader trend among Nepali financial institutions to lock in long term liquidity amidst a fluctuating interest rate environment.
Structure and Allocation of the Debenture
The ICFC Finance debenture approval covers a total of 500,000 units, each with a par value of 1,000 rupees. The company has adopted a hybrid distribution model to ensure both institutional participation and retail access.
Total Issue Size: 500 million rupees (5 lakh units).
Private Placement: 300 million rupees (3 lakh units) will be offered to institutional investors and high net worth individuals through private negotiations.
Public Issue: 200 million rupees (2 lakh units) will be made available to the general public, including a mandatory 5 percent quota (10,000 units) for mutual funds.
Maturity Period: The debenture has a fixed term of 7 years, meaning the principal will be refunded in the year 2089 BS.
Interest Rate and Investor Returns
One of the most attractive features of the “8% ICFC Finance Limited Debenture 2089” is its fixed interest rate. At a time when bank deposit rates are subject to monthly revisions, this debenture offers a guaranteed annual return of 8 percent.
Investors will receive interest payments on a semi annual basis, providing a steady stream of income for seven years. This makes the instrument particularly appealing for retirement funds, insurance companies, and individual investors looking for “safe haven” fixed income products that outperform standard savings accounts.
Issue Management and Regulatory Compliance
ICFC Finance has appointed Kumari Capital Limited as the issue and sales manager for this project. The agreement was finalized between Sunil Pant, CEO of ICFC Finance, and Pushpa Sharma, CEO of Kumari Capital.
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The manager will handle the following responsibilities:
Managing the public subscription process via the C-ASBA system.
Ensuring the debenture is listed on the Nepal Stock Exchange (NEPSE) for secondary market trading.
Acting as a bridge between the company and the credit rating agencies to maintain the instrument’s transparency.
Strategic Purpose: Strengthening the Capital Base
The ICFC Finance debenture approval is not just about raising cash; it is about strategic balance sheet engineering.
Managing the Credit to Deposit (CD) Ratio: Funds raised through debentures are counted as part of the core capital or long term resources, helping the company stay within the regulatory CD ratio limits prescribed by Nepal Rastra Bank.
Expanding the Loan Portfolio: The 500 million rupees will be primarily deployed in long term lending sectors such as home loans, hire purchase, and SME financing, where the 7 year maturity of the debenture perfectly matches the duration of the loans.
Liquidity Buffer: By securing long term funds at a fixed cost, ICFC Finance reduces its sensitivity to sudden spikes in market interest rates.
Current Financial Standing of ICFC Finance
The debenture approval comes at a time when ICFC Finance is showing steady growth. For the second quarter of the fiscal year 2082 2083, the company reported an annualized Earnings Per Share (EPS) of 5.41 rupees and a net worth per share of 170.19 rupees. The successful subscription of this debenture is expected to further bolster its financial stability and market confidence.
Conclusion
The ICFC Finance debenture approval for the “8% ICFC Finance Limited Debenture 2089” provides a timely opportunity for investors to secure a 7 year fixed return. With Kumari Capital at the helm of the issue management, the public offering is expected to open shortly. For ICFC Finance, this move represents a calculated step toward diversifying its funding sources and fueling its next phase of credit expansion in the Nepali market.
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