Nirdhan Utthan Laghubitta to Issue NRs 1 Billion Subordinated Debentures
Nirdhan Utthan Laghubitta Debenture
23rd November 2025, Kathmandu
Nirdhan Utthan Laghubitta Debenture issuance is set to move forward, marking a significant fundraising effort for the microfinance institution.
Nirdhan Utthan Laghubitta Debenture
The company is actively preparing to issue non-collateralized, subordinated debentures totaling NRs 1 billion. This move signals the institution’s strategy to diversify its funding sources and strengthen its operational capacity across the country. This capital raising initiative will be vital for expanding its reach and fulfilling its core mission of poverty alleviation.
Key Details of the Debenture Offer
The microfinance financial institution has officially announced the specifics of the proposed debenture. The financial product is designed to attract investors looking for a stable return, while providing the institution with long-term capital.
Total Value: The company aims to issue debentures worth NRs 1,000,000,000 (One Billion Nepali Rupees).
Interest Rate: The fixed interest rate is actively set at 7 percent. This competitive rate is expected to draw strong interest from both institutional and retail investors.
Status: The debentures are explicitly classified as unsecured and subordinated term debentures. This structure is common for financial institutions seeking Tier 2 capital.
Approval Process: The proposal is currently submitted to Nepal Rastra Bank (NRB) for the necessary regulatory consent before proceeding to the Securities Board of Nepal (SEBON) for final approval.
The Decision-Making Process
The decision to proceed with the debenture issuance was finalized at the corporate level after careful consideration of market conditions and strategic capital needs.
Board Approval: The Board of Directors of Nirdhan Utthan Laghubitta Financial Institution officially made the resolution in a meeting held on Mangsir 4. The directors actively discussed the terms and the timeline for the issuance.
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Strategic Intent: This debt instrument will effectively complement the company’s equity base, allowing it to manage a larger loan portfolio. The funds will be strategically utilized to support the microfinance initiatives across its network of branches.
Impact on Microfinance Operations
The successful issuance of the Nirdhan Utthan Laghubitta Debenture will have a profound impact on the company’s ability to serve its target demographic—low-income and marginalized populations.
Capital Expansion: Access to NRs 1 billion in capital will enable the institution to significantly increase the amount of small loans it provides. This directly facilitates economic empowerment for thousands of micro-entrepreneurs.
Market Position: By actively raising debt capital, the institution reinforces its position as a major player in Nepal’s competitive microfinance sector. It demonstrates financial robustness and a long-term growth perspective to the market.
Active Lending: The newly acquired funds will be actively channeled into core lending operations. This ensures that the capital reaches those who need it most, fueling income-generating activities in rural and semi-urban areas.
Financial Strength and Background
Nirdhan Utthan Laghubitta boasts a strong financial foundation, providing confidence to potential debenture holders. The company has consistently worked to enhance its governance and financial stability.
Paid-up Capital: The company maintains a robust paid-up capital base, currently standing at NRs 2 billion 61 crores 20 lakh. This equity base provides significant leverage for the new debt instrument.
Regulatory Compliance: The institution strictly adheres to all directives and capital requirements set forth by Nepal Rastra Bank. This commitment ensures a stable and trustworthy operating environment for its investors and customers. The successful execution of this debenture issuance will actively contribute to the stability of the overall financial system.
Investors and market analysts are now eagerly awaiting the official green light from the regulatory bodies. Once approved by the central bank and SEBON, the Nirdhan Utthan Laghubitta Debenture will be offered to the public, marking a key moment in the company’s financial history and expansion plan.
For more: Nirdhan Utthan Laghubitta Debenture
