Everest Bank Limited is going to issue bonds at an annual interest rate of 8.5 percent.
The bank is going to open the issue of ‘Everest Bank Limited Debentures, 2086’ from Magh 3. The term of the bond will be 8 years.
The bank is about to issue 20 Lakhs bonds with a face value of Rs 1,000 per share, equivalent to Rs 2 Arba . According to bank, out of this, 8 lakhs shares worth Rs 80 crore will be sold to the public . The remaining 12 lakh kitta shares worth Rs 1 arba 20 crore will be sold individually. Out of the bonds sold to the public, 5 percent or 40,000 Kitta have been set aside for Mutual funds.
Applications for the purchase of bonds should be submitted as early as Magh 6 . If full application is not received by that time, the period will be extended till magh 17. Investors will be able to apply for a minimum of 25 Kitta and a maximum of 100,000 Kitta .
The issue manager of the bank is NIBL S Capital Limited. Investors can apply for the purchase of the bonds from C-ASBA member banks and financial institutions and their branch offices.
In the credit rating issued for the issuance of bonds, Care Rating Nepal has given the bank a ‘Care NP Double A Minus Issuer Rating’ which indicates low credit risk. Institutions that receive that rating are considered sufficiently secure to meet their financial obligations on time.