ICFC Finance 9% Debenture Issue 2088: 7-Year Maturity, Apply Now via ASBA & Mero Share

22nd January 2025, Kathmandu

ICFC Finance Limited has opened its new debenture issuance today, January 22, 2025 (Magh 9, 2081). The company is offering “9% ICFC Finance Debenture – 2088,” with an annual interest rate of 9%. The company plans to issue a total of NPR 30 million worth of debentures.

ICFC Finance 9% Debenture Issue

Details of the Debenture Issuance

ICFC Finance will issue 300,000 units of debentures, each with a face value of NPR 1,000. The company has allocated 180,000 units for individual investors, while 120,000 units will be available through a public offering. Out of the public offering, 6,000 units are reserved for collective investment funds.

Application Process and Conditions

Investors can apply for a minimum of 25 units and a maximum of 120,000 units. The application period is set to close on 26 January 2025 at the earliest. However, the period may be extended until February 5, 2025, depending on demand. The debentures have a 7-year maturity period with an interest rate of 9% per year.

Eligibility for Application

Interested investors can apply through the ASBA (Application Supported by Blocked Amount) service via participating banks and financial institutions. Applications can also be made through the “Mero Share” platform, managed by the Securities Board of Nepal (SEBON). Kumari Capital Limited is overseeing the sales process for these debentures.

Rating and Risk Evaluation

The debenture has been rated by CARE Ratings Nepal, which assigned a “CARE NP- BBB-” issuer rating. This rating suggests a moderate risk level for meeting financial obligations on time.

Public Offering and Investment Conditions

ICFC Finance is offering a 9% annual interest rate for a 7-year term. The total value of debentures is NPR 30 million, with 180,000 units designated for individual investors and 120,000 units for the general public. Among the public offering units, 6,000 units are set aside for collective investment funds.

Investors can apply for at least 25 units, with the maximum application being 120,000 units. The subscription period will end on 26 January 2025 but could extend until January 2025, if demand requires.

Application Submission and Management

The sales manager for this debenture issuance is Kumari Capital Limited. Investors can apply through participating banks and financial institutions with ASBA services. Additionally, applications can be submitted through the Mero Share platform. The application deadline for the debenture issuance is scheduled for January 2025 but may be extended to January 2025.

Conclusion

ICFC Finance’s 9% debenture offering presents an attractive investment opportunity with a fixed 9% annual interest rate over 7 years. With moderate risk, as indicated by the rating, it offers a stable return for investors.

Interested investors should make sure to apply within the application period using the available platforms. The debenture’s favorable terms, alongside its managed risk profile, make it an appealing option for both individual and institutional investors.

For more:  ICFC Finance 9% Debenture Issue