Nabil Bank 7% Debenture And Fixed-Income Investing
1st August 2025, Kathmandu
In a financial landscape often dominated by the excitement and risk of the stock market, many savvy investors are turning to more stable and secure options. The recent news of Nabil Bank Limited’s successful allotment of the “7% Nabil Debenture 2089” is a prime example of this trend.
Nabil Bank 7% Debenture
If you’re an investor in Nepal looking for a reliable way to grow your wealth, understanding this new debenture is crucial. This article provides a detailed breakdown of the debenture’s key features, its successful issuance, and why it’s an excellent choice for a diversified investment portfolio.
What is the “7% Nabil Debenture 2089”?
The “7% Nabil Debenture 2089” is a long-term debt instrument issued by Nabil Bank Limited, one of Nepal’s leading commercial banks. A debenture is essentially a loan you provide to a company or bank, and in return, they promise to pay you a fixed interest rate over a set period. This debenture, with its name “7%,” guarantees a fixed annual interest rate of 7%, which is paid out semi-annually.
One of the most attractive features of this debenture is its long maturity period. It is set to mature in 2089 B.S. (2032 A.D.), providing investors with a stable, predictable income stream for more than seven years. For anyone seeking a consistent return on their investment without the daily fluctuations of the stock market, this debenture is an ideal option.
The Allotment Process and Investor Confidence
The public subscription for this debenture was open from July 21 to July 25, 2025. Nabil Bank had offered a total of 3 million units, each priced at NPR 1,000, with a total issue size of NPR 3 billion. The demand was strong, with both retail and institutional investors showing significant interest.
The issuance was managed by Nepal SBI Merchant Banking Limited, and the allotment process was officially completed on August 1, 2025. The process was meticulous, ensuring that only applicants who submitted valid and complete forms received their debenture units. The successful and timely allotment is a testament to the efficient management of the issuance and the high level of trust that investors place in Nabil Bank.
The breakdown of the debenture units was as follows:
- 1.8 million units were allocated for private placement.
- 60,000 units were reserved for mutual funds.
- 1.14 million units were made available for the general public.
This careful allocation strategy ensures broad participation, from large institutional investors to everyday citizens.
How to Check Your Allotment Status
If you applied for units in the “7% Nabil Debenture 2089,” you can now check your allotment status. The results are publicly available through official channels. To check your individual status, you should visit the official website of the issue manager, Nepal SBI Merchant Banking Limited, or the relevant securities portals that provide debenture and IPO results.
Why Debentures Are a Smart Investment Choice
In today’s dynamic economic climate, many investors are looking for ways to protect their capital while still earning a return. Fixed-income securities like debentures are becoming increasingly popular for several reasons:
- Stable and Predictable Returns: The 7% fixed annual interest rate provides a reliable source of income. Unlike stocks, which can be volatile, the returns on a debenture are known in advance. This makes financial planning much easier.
- Lower Risk: Debentures are generally considered less risky than equities. They are a form of secured or unsecured debt, and debenture holders are typically given priority over shareholders in the event of a company’s liquidation.
- Portfolio Diversification: Adding fixed-income instruments like the Nabil Bank debenture to your portfolio helps to balance the risk associated with equity investments. It acts as a cushion during periods of stock market downturns, providing stability and security.
- Long-Term Security: With a maturity period extending to 2089, this debenture is perfect for long-term savings goals, such as retirement planning, education funds, or building a secure nest egg.
What’s Next for the Debenture?
With the allotment process complete, Nabil Bank will now proceed to list the debenture on the Nepal Stock Exchange (NEPSE). This is a crucial step as it allows for secondary market trading. Once listed, debenture holders can buy or sell their units before the maturity date, providing a level of liquidity that makes the investment even more flexible.
The successful issuance of this debenture is not only a win for Nabil Bank and its investors but also for the broader Nepali financial market. It helps to deepen the country’s capital market by offering investors alternatives beyond traditional stocks and deposits. As more financial institutions follow suit, the bond market in Nepal will become more robust, providing more choices and better opportunities for the general public.
For investors who value security and a steady income stream, the “7% Nabil Debenture 2089” represents a significant and trustworthy opportunity to build a resilient and diversified financial future.
For More: Nabil Bank 7% Debenture