Banking news. Bank of Kathmandu Limited’s bond issuance application has been opened for sale from today. The bank is going to issue and sell bonds worth Rs 1.60 billion at an annual interest rate of 8.50 percent from today.
The bank is about to issue 1.6 million bonds with a face value of Rs 1,000 per share, equivalent to Rs 1.60 billion. Out of the total bonds to be issued, 960,000 bonds worth Rs. 960 million will be sold individually and the remaining 640,000 bonds worth Rs. 640 million will be issued to the public.
Out of the total bonds issued to the public, 5 percent or 32,000 bonds have been set aside for collective investment funds. The general public will be able to apply for the remaining 608,000 lots.
Investors will be able to apply for a minimum of 25 lots and a maximum of 300,000 lots in the bond.
The bank will repay the 10-year bond at the rate of 8.5 percent per annum after the end of the first and second half of each fiscal year.
Nabil Investment Banking Limited is the manager of issuance and sale of bonds. Applications for the loan can be submitted as early as December 12 and as late as December 25.
ICRA Nepal has given ICRP IR Triple B Plus rating to the bank. An institution that receives this rating is considered to be an institution that fulfills its financial obligations on time and has a moderate credit risk.
Investors can apply for the C-ASBA service licensed by the Nepal Securities Board from participating banks and financial institutions and their branch offices.