27th June 2025, Kathmandu
Nabil Bank Limited has received approval from the Securities Board of Nepal (SEBON) to issue a debenture worth Rs. 3 billion. SEBON approved 12th Asar 2081 (June 26, 2024).
Nabil Bank Debenture Approved SEBON
8-Year Term with 7% Interest Rate
The debenture, titled “7% Nabil Debenture 2089,” will have a maturity period of eight years. Investors will receive a fixed annual return of 7% throughout the term. The offering includes a total of 3 million units, each priced at Rs. 1,000.
Out of the total, 1.8 million units will be sold privately to institutions or through mutual agreements. The remaining 1.2 million units will be made available to the general public through public issuance.
Credit Rating Indicates Strong Performance
Credit rating agency ICRA Nepal Limited has assigned an [ICRANP-IR] A+ rating to this debenture. This rating reflects Nabil Bank’s strong financial health and its ability to meet payment obligations on time. It also signals a low-risk opportunity for potential investors seeking stable income.
Nepal SBI Merchant Banking As Issue Manager
To ensure smooth execution, Nepal SBI Merchant Banking Limited has taken charge as the issue and sales manager. The firm will handle the distribution and management of the debenture sales. This collaboration is expected to attract both institutional and retail investors, boosting market confidence.
Purpose Behind The Issuance
Nabil Bank aims to diversify its funding sources through this debenture. Additionally, the raised capital will help support its lending operations and long-term financial goals. The move aligns with the bank’s strategy to strengthen its capital base and offer more secure investment alternatives.
Moreover, with the prevailing interest rate volatility, fixed-income products like these provide investors with a predictable and steady return.
Upcoming 8.5% Debenture Also In Pipeline
Alongside this issuance, Nabil Bank is preparing to launch another debenture named “8.5% Nabil Bank Debenture 2085.” This new offer will have a seven-year maturity period and offer a higher interest rate of 8.5% per annum.
Unlike the 7% debenture, this one will be issued under the management of Himalayan Capital Limited. However, the bank has not yet obtained a credit rating for the 8.5% instrument. This absence may affect investor interest unless the rating is secured before issuance.
SEBON Approves Rs. 3 Billion Worth Of Instruments
SEBON has given Nabil Bank the green signal to issue a total of 3 million units of bonds, each valued at Rs. 1,000. The total proceeds from this issuance will amount to Rs. 3 billion. Of this, Rs. 1.2 billion worth of units will be offered to the public, while Rs. 1.8 billion worth will be placed through private channels.
Such division between public and private placement helps the bank maintain control over institutional participation while still allowing public investors to benefit from the scheme.
Opportunity For Investors
The debenture offers an attractive fixed return for those looking for long-term, low-risk investment options. With strong credit ratings and a reputable issuer, the offering is expected to gain quick traction. Investors seeking alternatives to volatile stock markets or lower-return savings instruments may find this debenture worthwhile.
Moreover, the public offering will allow general investors to access corporate debt instruments, often limited to large institutions. This move supports financial inclusion and capital market development in Nepal.
Nabil Bank’s Continued Market Expansion
This initiative reflects Nabil Bank’s ongoing efforts to expand its market offerings. It also shows the bank’s commitment to maintaining financial discipline and transparency in raising funds. The issuance aligns with regulatory frameworks and demonstrates a proactive approach to long-term capital planning.
In previous years, Nabil Bank has launched several fixed-income products. Its strong performance and market trust position it as a preferred issuer in Nepal’s financial landscape.
Conclusion
In summary, Nabil Bank is set to issue a major debenture of Rs. 3 billion titled “7% Nabil Debenture 2089,” with an eight-year maturity and a 7% annual interest rate. The issuance is divided between institutional investors and the general public. With a strong credit rating from ICRA Nepal and SBI Merchant Banking as the issue manager, the offering is expected to attract wide participation.
At the same time, the bank is working to launch a second debenture with 8.5% interest, although this product currently lacks a credit rating. Through these efforts, Nabil Bank continues to drive capital market growth and provide safe, income-generating opportunities for Nepali investors.
For more:- Nabil Bank Debenture Approved SEBON