29th January 2025, Kathmandu
Nepal Securities Board (SEBON) has granted Everest Bank the approval to issue a debenture worth NPR 3 billion. The debenture, named “Everest Bank Debenture-2091,” aims to attract both public and individual investors.
Everest Bank Debenture Issue
Details of the Debenture Offering
Everest Bank plans to issue a total of 30 million debenture units, each with a face value of NPR 1,000. This will raise a total of NPR 3 billion. The bank will distribute 60% (18 million units) to individual investors and the remaining 40% (12 million units) to the public.
Attractive Interest Rate and Payment Terms
The debenture will offer an annual interest rate of 7.50%. Investors will receive interest payments every six months, providing a stable and predictable income stream. With a 10-year maturity period, this debenture presents a long-term investment opportunity.
Sales Process and Distribution
The debenture sale will involve two main components: 60% for individual investors and 40% for the general public. Of the total offering, 18 million units, worth NPR 1.8 billion, will be sold directly to individual investors. The remaining 12 million units, valued at NPR 1.2 billion, will be made available through public issuance. Laxmi Sunrise Capital will manage the sale process.
Benefits for Investors
With a 7.50% interest rate, the debenture provides an attractive return, especially given its long-term nature. The semi-annual interest payments make it an appealing option for investors seeking a reliable income. The 10-year term allows investors to secure their capital over a longer period, making it a solid addition to their portfolios.
Strengthening Financial Position
The funds raised through this debenture issuance will help Everest Bank strengthen its financial stability and support growth projects. This move is part of the bank’s broader strategy to diversify its funding sources and offer attractive investment options in the market.
The debenture’s approval and offering are expected to enhance Everest Bank’s position in Nepal’s competitive financial sector.
For more: Everest Bank Debenture Issue
