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Debentures worth Rs 11.58 to be issued

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Debentures worth Rs 11.58 to be issued
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February 25: In this first six months of the current fiscal year, different commercial banks have issued debentures worth Rs 11.58 billion.

Debentures worth Rs 6.08 billion have already been sold, while the remaining debentures worth Rs 5.50 billion are in the process to be sold. In the meantime, Securities Board of Nepal (Sebon) has approved the decisions of NIC Asia Bank, Sanima Bank, Siddhartha Bank and Global IME Bank to issue debentures worth Rs 6 billion.

NIC Asia Bank has already issued debentures twice in the current fiscal year. The bank had sold seven-year debenture worth Rs 1.83 billion at 11 percent interest in August. Sebon also approved the bank to issue debenture worth Rs 4.10 billion at 10 percent interest December last year.

Likewise, NMB Bank, Sunrise Bank and Nepal Bangladesh Bank are in the process to issue debentures worth Rs 6 billion. These banks are waiting for Sebon’s approval to issue the debentures. According to Sebon, it is in the final stage to approve NMB Bank’s debenture. While Sebon has asked Sunrise Bank to improve its detail paper, Nepal Bangladesh Bank is yet to come to Sebon’s office for approval.  

According to Anal Raj Bhattarai, debentures will help the banks in the long-run.   

 

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