Prime Commercial Bank Opens Rs. 3 Billion Debenture Issue

30th June 2026, Kathmandu

Prime Commercial Bank Limited has opened the public issuance of its 10-year debenture from today, offering securities worth Rs 3 billion.

Prime Bank Opens Debenture

The major corporate debt collection program highlights the continuous efforts of local commercial banks to lock down long term investable capital pools.

Securing non volatile funding sources helps major commercial tier entities stabilize their credit to deposit operational parameters while managing large scale infrastructure loans.

Balanced Allocation Models and Private Placement Metrics

The bank is issuing 3 million debenture units with a face value of Rs 1,000 per unit.

Of the total issue, 1.8 million units have been allocated through private placement, while 1.2 million units are available for the general public. Out of the public allocation, 5 percent has been reserved for mutual funds.

The split structure allows the bank to tap into substantial institutional portfolios directly while maintaining healthy participatory allocations for individual retail stock buyers.

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Subscription Deadlines and Adjusted Application Ranges

Investors can apply for the debentures until July 3 if the issue is fully subscribed early. Otherwise, the application period will remain open until July 14.

Applicants can subscribe for a minimum of 25 units and up to the entire number of units available.

The adjustable timeline ensures that the treasury team has enough calendar days to collect the complete subscription target even during fluctuating market conditions.

Regulatory Approval Origins and Fixed Interest Features

The Securities Board of Nepal granted approval for the issuance on June 17. The debenture carries a fixed annual interest rate of 6.25 percent and has a maturity period of 10 years.

Receiving timely clearance from the capital market controller allows the commercial entity to execute its issuance according to planned commercial schedules.

Holding a long maturity profile protects the corporate bank from sudden liquidity shortfalls, guaranteeing steady annual returns to corporate and public debenture holders for the next ten years.

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