From Tuesday, Prabhu Bank will issue a Rs 4 billion debenture bond.

From Tuesday, Prabhu Bank will issue a Rs 4 billion debenture bond.

KATHMANDU: Prabhu Bank issued Rs 4 billion in bonds on Tuesday.

The bank has launched a Rs 4 billion 10-year bond called the ‘Prabhu Bank Debenture-2087,’ with an annual interest rate of 8.5%.

The total number of units issued is 40,00,000, with each unit having a par value of Rs 1,000. Though 24 lakh units will be sold through private placement, 16 lakh units will be made available to the general public, including a 5% quota for mutual funds.

Investors may apply for as little as 25 units and as many as 100,000 units. The bond’s initial deadline is May 30.

If the problem is not subscribed to by the 30th of May, the deadline will be extended to the 9th of June.