Laxmi Bank Receives SEBON Approval To Issue 20 Lakh Units Debenture

Laxmi Bank Receives SEBON Approval To Issue 20 Lakh Units Debenture

Laxmi Bank Limited (LBL) will issue a debenture titled ’10 years, 8.5 percent Laxmi Bank Debenture.’ The Securities Board of Nepal (SEBON) approved the debenture issuance on Ashad 15, 2078 BS.

Following SEBON approval, the bank will now float a debenture of 20 lakh units. Each debenture unit has a par value of Rs 1,000. As a result, the total debenture issue is Rs 2 Arba. The bank will sell 12 lakh units of debenture worth Rs. 1.20 Arba through private placement out of the total issue. Similarly, the general public can apply for the remaining 8 lakh units worth Rs. 80 crores. Mutual funds will receive 5%, or 40,000 units, of the public issue size of 8 lakh units.

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The bank will pay 8.5 percent interest on the debenture semi-annually. The debenture has a 10-year maturity period. As a result, Laxmi Bank will refund the principal on 2088 BS.

Civil Capital Markets Limited is the debenture’s issuer and sales manager.

Given the current low interest rates in the financial market, the debenture issue is likely to garner attention. Because the interest rate on this debenture is higher than the interest rate on a fixed deposit, investors may want to consider purchasing the issue as a long-term investment option.

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