29th April 2025, Kathmandu
NMB Bank has applied to the Nepal Securities Board (SEBON) to issue bonds worth NPR 5 billion. The bank plans to release 5 million units of a 7-year bond called NMB Power Bond-1, offering an annual interest rate of 7%.
NMB Bank NPR 5 Billion Bond
Bond Details
The bonds will be sold in two segments. NMB Bank plans to sell 3 million units directly to individual investors. The remaining 2 million units will be available to the general public. The bond will have a face value of NPR 1,000 per unit.
The bond comes with a 7% annual interest rate, which will be paid out yearly. The bonds will mature in 7 years, making it an attractive long-term investment option. This bond issue aims to raise significant capital for the bank’s further growth and operations.
Application to SEBON
NMB Bank filed its application with SEBON on the 24th of April. Once SEBON approves the application, the bond issuance will proceed. The bank has appointed Siddhartha Capital Limited as the issuance and sales manager for the bond.
The decision to issue these bonds is part of NMB Bank’s strategy to enhance its financial resources. The bank is looking to raise funds that will support various business operations, expansion projects, and other future initiatives.
Investment Opportunity
The NMB Power Bond-1 is designed to attract both individual and public investors. The 7% annual interest rate offers a stable return over the 7-year period. It provides a unique opportunity for long-term investors to earn consistent income.
Additionally, the bank’s move to sell 3 million units to individual investors shows a clear effort to involve more people in investment opportunities. The remaining 2 million units will be open to the broader public, ensuring wider participation.
About NMB Bank and Siddhartha Capital
NMB Bank is one of Nepal’s leading commercial banks, offering various financial products and services. With a strong customer base, it continues to expand its reach and support the country’s economic growth.
Siddhartha Capital Limited, a well-known investment management firm, will oversee the bond issuance. As the sales manager, Siddhartha Capital will help ensure the smooth execution of the bond sale, guiding potential investors through the process.
Conclusion
NMB Bank’s decision to issue a bond worth NPR 5 billion highlights its commitment to expanding and strengthening its financial position. The bank’s bond offering, if approved, will provide investors with a secure and profitable investment option.
This bond issuance represents a major step for NMB Bank as it continues to grow its business and attract new investment. It also gives individual and institutional investors the chance to benefit from the bank’s success in the long term.
Once SEBON approves, the bond issue will be one of the major financial events in Nepal this year, contributing significantly to both the bank’s growth and the wider financial market.
For more: NMB Bank NPR 5 Billion Bond