2nd February 2025, Kathmandu
ICFC Finance Limited has completed the allotment of its “9% ICFC Finance Limited Debenture 2088.” The company issued 300,000 units, each valued at NPR 1,000, totaling NPR 30 crore. Kumari Capital Limited managed the issuance.
ICFC Finance Debenture 2088 Allotment
The debenture offers a 9% annual interest rate for seven years, attracting strong investor interest. Due to the high demand, the issue was oversubscribed.
Distribution and Allotment Breakdown
ICFC Finance distributed the debenture in two categories:
180,000 units (NPR 18 crore) through private placement for institutional investors.
120,000 units (NPR 12 crore) for public issuance.
Of the public offering,
6,000 units (5%) were reserved for mutual funds.
114,000 units were open to general investors.
Applications remained open from 22 January to 26 January. A total of 7,247 applicants requested 631,357 units, significantly exceeding the available quantity. Due to this oversubscription, a lottery-based allotment was conducted in the presence of regulatory authorities.
Final allotment details:
Institutional investors received 180,000 units proportionally.
4,560 general investors secured 114,000 units through the lottery system.
Strong Demand for ICFC Debenture
Investors showed high interest due to the 9% fixed return. With declining bank interest rates, many saw this debenture as a stable investment. The strong response reflects a rising demand for fixed-income securities in Nepal’s financial market.
Interest Payment and NEPSE Listing
Interest payments will be made twice a year after tax deductions. The principal amount will be repaid after seven years at maturity.
Additionally, the debenture will be listed on the Nepal Stock Exchange (NEPSE). Investors can trade it in the secondary market, ensuring liquidity and potential capital gains.
Impact and Future Outlook
This successful issuance will help ICFC Finance expand its financial resources and strengthen future lending activities. It also encourages corporate bond investments in Nepal.
With the growing interest in structured financial products, more companies may explore similar funding opportunities in the future.
For more: ICFC Finance Debenture 2088 Allotment
