Everest Bank Debenture Issue: A Strategic Move in Nepal’s Capital Market

18th March 2026, Kathmandu

Everest Bank Limited has announced a major capital market initiative with the issuance of debentures worth NPR 3 billion.

Everest Bank Debenture Issue

This Everest Bank Debenture Issue is designed to provide the bank with long-term, low-cost funding while offering investors a reliable fixed-income instrument. To ensure the smooth execution of the public and private offerings, the bank has officially appointed Laxmi Sunrise Capital Limited as the issue and sales manager.

Strategic Capital Raise: The 6.25% Offering

The Everest Bank Debenture Issue consists of 3,000,000 units (30 lakh units) with a par value of NPR 1,000 per unit. This issuance is a key part of the bank’s strategy to manage its liquidity and capital adequacy ratio without diluting existing shareholder equity.

The allocation of the units is structured to cater to both institutional and individual portfolios:

Private Placement (60%): 1.8 million units (NPR 1.8 billion) reserved for institutional investors and high-net-worth individuals.

Public Issue (40%): 1.2 million units (NPR 1.2 billion) available for the general public, including a small portion reserved for mutual funds.

Key Investment Terms and Returns

For conservative investors in Nepal, the Everest Bank Debenture Issue offers a predictable alternative to the volatile stock market.

• Annual Interest Rate: 6.25% fixed per annum.
• Tenure: 6 years from the date of allotment.
• Payout Frequency: Semi-annual (Interest is credited every six months).
• Maturity: Full principal repayment at the end of the 6-year term.

Professional Management and Signing

The formal agreement for the Everest Bank Debenture Issue was signed between Sudesh Khaling, CEO of Everest Bank Limited, and Bijay Lal Shrestha, CEO of Laxmi Sunrise Capital Limited. As the issue manager, Laxmi Sunrise Capital will handle the regulatory filings with the Securities Board of Nepal (SEBON) and coordinate the listing on the Nepal Stock Exchange (NEPSE) once the allotment is finalized.

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Why Invest in Everest Bank Debentures?

Investing in this debenture provides several distinct advantages over traditional savings accounts or equity investments:

Fixed Returns: Unlike stocks, where dividends depend on yearly profits, the 6.25% interest is a legal obligation of the bank.

Superior Security: Everest Bank is one of Nepal’s leading commercial banks with a strong credit rating, making this a low-risk debt instrument.

Secondary Market Trading: Once listed on NEPSE, investors can trade these debentures, providing an exit strategy before the 6-year maturity if liquidity is needed.

Inflation Hedge: Fixed semi-annual payouts help investors maintain a steady cash flow in a fluctuating economic environment.

Market Outlook for Corporate Debt in Nepal

The Everest Bank Debenture Issue comes at a time when the Nepal Rastra Bank (NRB) is encouraging commercial banks to diversify their funding sources. By issuing long-term debt, Everest Bank reduces its dependence on short-term deposits, allowing it to offer more stable long-term lending rates for infrastructure and hydropower projects. This move is expected to deepen the corporate bond market in Nepal, providing more “depth” to the capital market beyond just equity shares.

Conclusion

The Everest Bank Debenture Issue represents a sophisticated financial tool that balances the bank’s need for stable capital with the investor’s need for secure returns. With a 6.25% interest rate and a clear 6-year horizon, it is an attractive option for those looking to diversify their investment portfolio in Nepal. Interested investors should keep their Demat accounts active and ensure their C-ASBA registrations are updated to participate in the upcoming public window.

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