NIC Asia Bank Debenture Investment: 7% Annual Interest, NPR 5 Billion Offering, 10-Year Maturity
30th March 2025, Kathmandu
NIC Asia Bank Limited is set to issue NPR 5 billion worth of debentures starting from Chait 25 (7 April). The bank will offer 5 million debenture units, each with a face value of NPR 1,000, at an annual interest rate of 7%. The debentures will have a 10-year maturity period.
NIC Asia Bank Debenture Investment
The bank has decided to split the total debenture offering into two segments. First, it will allocate 30 lakh units, worth NPR 3 billion, to individual investors. The second segment, which amounts to 20 lakh units (worth NPR 2 billion), will be available to the general public. Additionally, 5% of the general public’s units, or 1 lakh units, will be reserved for collective investment funds.
Investors can apply for a minimum of 25 units and a maximum of 2.5 million units. This setup offers a range of options for both small and large investors, encouraging broad participation in the debenture offering. The debenture offering is rated IRN BBB+ by Infometrics Credit Rating Nepal, signifying a medium-to-high level of security for repayment.
Applications for the debenture will be accepted through ASBA (Application Supported by Blocked Amount), which can be processed via participating banks and financial institutions. Investors can also use ‘Mero Share’, an online platform operated by CDS and Clearing Limited, to apply. The application deadline will be Baishakh 8, 2082 (April 2025), providing investors ample time to submit their applications.
Interest payments for the debenture will be made twice a year. The first payment will be made at the end of the fiscal year, and the second after the half-yearly period. The payments will be subject to tax deductions as per applicable regulations.
NIC Asia Bank aims to raise additional capital through this debenture issuance. The bank believes that it will help in strengthening its financial position while providing a stable and secure investment opportunity for investors.
The debenture issuance manager for this offering is Prabhu Capital Limited, a well-known financial service provider in Nepal. The bank’s decision to issue the debentures is part of its broader strategy to enhance its capital base and offer competitive returns to investors.
The debenture offers an attractive interest rate in the current market, making it a viable option for many investors seeking a steady income stream. NIC Asia Bank is keen to ensure that this issuance meets the needs of both individual and institutional investors, providing a reliable source of funding for its ongoing operations and future growth.
Through this initiative, NIC Asia Bank continues to strengthen its position in the Nepali banking sector and offers its investors a way to secure their financial future.
For more: NIC Asia Bank Debenture Investment
