ICFC Finance Debenture 2089 Open for Subscription
23rd February 2026, Kathmandu
The capital market in Nepal is experiencing a surge in fixed-income opportunities as ICFC Finance Limited officially opens its public subscription for the 8 percent ICFC Finance Limited Debenture 2089. Starting on February 23, 2026 (Falgun 11, 2082), investors have the opportunity to subscribe to a total of 500,000 units of this corporate bond, which carries a par value of 1,000 Nepali rupees per unit. This issuance, worth 500 million rupees, comes at a time when the domestic financial market is seeking stable investment alternatives to the volatile equity market. With a maturity period of seven years, the debenture is designed to provide a predictable annual return to both individual and institutional investors. The Securities Board of Nepal (SEBON) provided the final approval for this issue on Magh 21, 2082, recognizing the institution’s compliance with the necessary capital adequacy and transparency requirements.
ICFC Finance Debenture 2089
ICFC Finance Limited, a national-level Class C financial institution, has appointed Kumari Capital Limited as the issue and sale manager for this transaction. The structural design of the 500,000 units is divided to cater to different segments of the market. Specifically, 300,000 units (60 percent of the total) are allocated for private placement, allowing large-scale institutional investors and high-net-worth individuals to secure significant portions of the debt instrument. The remaining 200,000 units are being offered to the general public. Within the public portion, 5 percent or 10,000 units have been set aside for mutual funds, ensuring that small-scale investors participating through collective investment schemes also benefit from the fixed 8 percent coupon rate. This balanced allocation strategy helps ICFC Finance diversify its long-term funding sources while offering the public a secure way to grow their savings.
The 8 percent ICFC Finance Limited Debenture 2089 is a non-convertible subordinated debt instrument, meaning it carries a fixed interest rate throughout its seven-year tenure until its maturity in the year 2089 BS. For a conservative investor, the appeal of this debenture lies in the regularity of the interest payments. Unlike dividends from stocks, which depend on the company’s annual profit and the board’s discretion, the interest on a debenture is a contractual obligation. Investors can apply for a minimum of 25 units, requiring an initial investment of 25,000 rupees, and a maximum of 200,000 units, making it accessible to a wide range of participants. The application window is scheduled to close at the earliest on February 26 (Falgun 14), with a potential extension until March 9 (Falgun 25) if the issue is not fully subscribed within the first four days.
From a credit perspective, ICFC Finance Limited has maintained a moderate degree of safety in its financial obligations. According to recent assessments by CARE Ratings Nepal, the institution has been assigned a CARE-NP BBB minus rating, which indicates a moderate credit risk but a stable ability to service its financial commitments. The bank’s performance in the first half of the fiscal year 2082/83 shows resilience, with a gross non-performing loan (NPL) ratio that remains competitive within the finance company category. However, the IMF and Nepal Rastra Bank have recently highlighted the rising risks in the broader financial sector, particularly regarding asset quality. ICFC’s decision to issue this debenture is a proactive move to strengthen its capital base and improve its capital adequacy ratio (CAR), ensuring it has the necessary buffers to handle any potential credit slippages in the coming years.
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The funds raised through this 500-million-rupee debenture will be utilized by ICFC Finance to expand its lending operations and support its 21-branch network across Nepal. Class C institutions are increasingly focusing on specialized sectors such as hire-purchase, housing loans, and small-business financing. By securing long-term capital at a fixed 8 percent rate, the company can better manage its interest rate risk, especially if the central bank raises the base rate in response to future inflationary pressures. For the investor, this debenture serves as a portfolio diversifier. In a market where savings account interest rates can fluctuate significantly, locking in an 8 percent return for seven years provides a hedge against declining interest rates in the future.
Applying for the ICFC Finance Debenture 2089 has been made seamless through the C-ASBA system. Eligible investors with a Demat account and a MeroShare login can apply online through their respective banks and financial institutions. Given that Kumari Capital is managing the issue, they are responsible for the verification and eventual allotment of the units. It is important for investors to note that while debentures are generally safer than equities, they are not entirely risk-free. The return is dependent on the continued solvency of ICFC Finance Limited. However, given the company’s two decades of operational history and the oversight by Nepal Rastra Bank, the instrument is viewed as a reliable choice for those seeking to build a fixed-income component within their investment portfolio.
In conclusion, the ICFC Finance Debenture 2089 represents a significant opportunity for the Nepali public to participate in a structured, high-yield debt instrument. With a clear maturity timeline, a competitive interest rate of 8 percent, and a transparent allocation process, the issue is expected to see healthy demand. As the subscription window opens on Falgun 11, investors are encouraged to review the offer letter and assess their liquidity needs for the next seven years. By participating in such corporate bond issues, retail investors not only secure their own financial future but also contribute to the deepening and maturity of Nepal’s overall capital market.
For More: ICFC Finance Debenture 2089
