Nabil Debenture 2089: Extended Opportunity For Investors As Nabil Bank Seeks Full Subscription For Rs. 3 Billion Issuance
25th July 2025, Kathmandu
Nabil Bank Limited, a cornerstone of Nepal’s financial landscape, has officially announced an extension of the application deadline for its highly anticipated debenture.
Nabil Debenture 2089 Extended
Nabil Bank Limited has officially announced an extension of the application deadline for its highly anticipated “Nabil Debenture 2089.” This decision comes in response to a lower-than-expected subscription rate during the initial offering period, indicating a cautious yet discerning investor sentiment within Nepal’s current debt market. The extension aims to provide prospective investors with ample time to thoroughly evaluate this attractive fixed-income opportunity, which promises a stable 7% annual interest rate over an eight-year tenure.
The bank commenced the issuance of “Nabil Debenture 2089” on Shrawan 6, 2082 (July 21, 2025), with an ambitious target of raising Rs. 3 billion. This substantial issuance comprises 3 million units of debentures, each with a face value of Rs. 1,000. Originally, the application window was scheduled to close swiftly on Shrawan 9 (July 24, 2025). However, in light of the initial investor response, Nabil Bank has strategically extended the deadline to Shrawan 20, 2082 (August 4, 2025), allowing applications during regular banking hours. This flexibility underscores the bank’s commitment to ensuring broad investor participation and successful completion of the issuance.
Debenture Structure and Investor Allocation
The “Nabil Debenture 2089” has been structured to cater to a diverse range of investors. Out of the total 3 million units, 1.2 million units (40%) have been earmarked for public subscription, making it accessible to individual investors and smaller institutions. The larger portion, comprising 1.8 million units (60%), is designated for private placement, targeting institutional investors and high-net-worth individuals.
Within the public offering, a thoughtful allocation has been made for mutual funds, reserving 5% or 60,000 units for these collective investment schemes. This leaves a significant 1.14 million units open for general investors, ensuring widespread access to this fixed-income product. The structured allocation reflects Nabil Bank’s strategy to balance public participation with strategic institutional investment, thereby strengthening its capital base effectively.
An Attractive Fixed-Income Proposition
This debenture stands out in the market due to its attractive features. With a maturity period of eight years, it offers a relatively long-term investment horizon, appealing to investors seeking stability and consistent returns. The fixed annual interest rate of 7% is particularly appealing in the current economic climate, where market volatility can often impact other investment avenues. For investors prioritizing capital preservation and predictable income streams, the “Nabil Debenture 2089” presents a compelling option. It is an integral part of Nabil Bank’s long-term financial strategy, aimed at reinforcing its capital base, prudently managing its funding requirements, and offering a robust fixed-income alternative to investors navigating dynamic market conditions.
Simplified Application Process
Nabil Bank has ensured that the application process for the debenture is convenient and accessible to a wide range of investors. Applications can be submitted through financial institutions participating in the C-ASBA (Centralized Application Supported by Blocked Amount) system, which are duly authorized by the Securities Board of Nepal (SEBON). Furthermore, for the digitally-savvy investor, applications can also be seamlessly processed via the CDSC’s (Central Depository System and Clearing Ltd.) user-friendly online platform, “Mero Share.”
Investors have the flexibility to apply for a minimum of 25 units, making it accessible even for smaller individual investors. For larger entities or those with greater investment capacity, the maximum application limit extends up to 1.2 million units. This broad application range ensures that the debenture caters to both retail and institutional players looking for steady, long-term returns.
Expert Management and Market Outlook
Nepal SBI Merchant Banking Limited has been entrusted with the crucial role of issue manager for this debenture. Their extensive experience and expertise in managing such public offerings are expected to ensure a smooth and efficient sales and application processing period during this extended window. Their professional oversight adds a layer of confidence for potential investors.
The decision to extend the subscription period, while reflecting the prevailing cautious sentiment in Nepal’s debt market, also highlights the bank’s proactive approach. Investors are increasingly evaluating various factors, including risk profiles and liquidity, before committing to long-term financial instruments. However, Nabil Bank remains optimistic that the extended deadline will provide sufficient time for interested parties to conduct their due diligence, understand the value proposition, and ultimately participate in this secure investment opportunity.
Debentures, such as the “Nabil Debenture 2089,” are generally perceived as lower-risk investments when compared to equity securities. They offer the distinct advantage of fixed returns and, importantly, provide priority to debenture holders in the event of a company’s liquidation. As the appetite for diversified investment products continues to grow among Nepali investors, financial institutions are increasingly leveraging these instruments not only to meet their own financing needs but also to offer structured, stable investment options to the market.
Nabil Bank, renowned as one of Nepal’s preeminent commercial banks, continues to play a pivotal role in fostering the growth and development of the country’s robust financial sector. With this debenture issuance, the bank aims not only to fulfill its capital requirements but also to reinforce investor confidence in long-term debt instruments, contributing to the broader maturity of Nepal’s capital markets.
Further announcements regarding the final allotment and listing of the “Nabil Debenture 2089” are expected to follow the conclusion of the extended application period on August 4, 2025. This extended window offers a valuable opportunity for investors seeking a reliable and attractive fixed-income addition to their portfolios in the thriving Nepali market.
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