Nepal SBI Bank’s 30 Lakh Debenture Listed on NEPSE, Trading Starts Thursday
6th November 2025, Kathmandu
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The official listing of the 7% Nepal SBI Bank Debenture 2090 (SBID2090) on the Nepal Stock Exchange (NEPSE) marks a significant moment for the country’s developing fixed-income market.
Nepal SBI Bank Debenture
Following the signing of the listing agreement between Nepal SBI Bank, a prominent player in the Nepali commercial banking sector, and NEPSE, this massive issuance of 30 lakh units with a face value of NPR 1,000 each is set to commence trading from Thursday. This move is a powerful affirmation of the corporate debt market, providing a much-needed boost to liquidity and offering investors a robust avenue for portfolio diversification and stable returns.
Decoding the Details: A Secure, Long-Term Investment
The specifics of the Nepal SBI Bank debenture position it as an attractive instrument for a wide range of investors, particularly those prioritizing income stability and principal protection over aggressive growth.
The Core Features of SBID2090
Name: 7% Nepal SBI Bank Debenture 2090 (SBID2090)
Interest Rate (Coupon Rate): 7%
Tenure: 10 years
Issued Quantity: 30 lakh units (totaling NPR 3 Billion)
Face Value: NPR 1,000 per debenture
The 7% interest rate is the fixed annual return promised by the bank, which is paid out to the debenture holders regardless of the bank’s profitability. This feature is particularly appealing in a fluctuating economic environment where deposit rates may vary. Furthermore, the 10-year tenure provides a decade-long commitment to stable income, making it ideal for financial planning and long-term capital preservation. The maturity year of 2090 B.S. (Bikram Sambat) is clearly defined, after which the bank is obligated to repay the full principal amount of NPR 1,000 per unit to the investor.
This substantial issuance of 30 lakh units, which was reported to have been heavily oversubscribed during its initial public offering (IPO) phase, underscores the strong investor appetite for reputable, high-quality corporate debt in Nepal. The successful listing on NEPSE now moves this instrument from the primary market to the accessible secondary market.
Impact on NEPSE and Secondary Market Liquidity
The listing of a high-volume debenture like the SBID2090 has transformative implications for the overall health and functionality of the secondary market in Nepal.
Enhancing Bond Market Liquidity
One of the biggest challenges in Nepal’s capital market has historically been the dormant nature of the bond market. While equity (share) trading is vibrant, the trading of corporate debentures and government bonds has traditionally lacked liquidity, forcing many investors to hold debt instruments until maturity.
The listing of 30 lakh units changes this dynamic. As the debenture begins trading on Thursday, it will inject a significant volume of a low-risk asset into the exchange. This liquidity is critical because it allows current debenture holders the option to exit their investment early if needed, selling their units to other investors on the exchange. This tradability—the ability to convert the security into cash—is the essence of an efficient secondary market and significantly enhances the value proposition of fixed-income instruments for the average retail investor.
A Benchmark for Investment Risk and Return
Nepal SBI Bank, being a subsidiary of the State Bank of India, carries a strong corporate and financial profile. The 7% coupon rate of this debenture will now serve as a key benchmark yield for the commercial banking sector’s long-term debt. Investors considering other corporate bonds or long-term fixed deposits will use this rate to assess the risk-return trade-off.
For investors, the listing offers two primary avenues for return:
Fixed Interest Income: The guaranteed 7% annual interest payment until maturity.
Capital Gains/Losses: The opportunity to buy or sell the debenture at a price different from its NPR 1,000 face value on NEPSE, based on prevailing market interest rates and the bank’s credit outlook. If market interest rates fall, the debenture’s price may trade above par (NPR 1,000) and vice-versa, offering an additional layer of potential return.
The Role of Banks in Developing the Debt Market
The issuance and listing of the SBID2090 also highlights the strategic role of commercial banks in developing Nepal’s financial landscape. Regulatory directives, such as the one requiring banks to issue debentures equivalent to a certain percentage of their paid-up capital, have been instrumental in pushing the corporate debt market forward.
By issuing debentures, banks are diversifying their funding sources away from over-reliance on traditional customer deposits. This practice improves the capital structure of the bank and enhances its financial stability, which is beneficial for the entire financial system. For the Nepali market, the continued large-scale issuance and subsequent NEPSE listing of debt instruments are crucial steps toward creating a more mature, diversified, and resilient capital market, offering a balanced menu of investment options beyond equity shares.
This new trading opportunity on Thursday for the Nepal SBI Bank debenture is a clear indicator that the fixed-income sector in Nepal is entering a new era of accessibility and transparency.
For More: Nepal SBI Bank Debenture
