Shangrila Development Bank Selling 750,000 Units OF Debenture From Ashad 6

Why Are Debentures Unpopular In Nepal?

Shangrila Development Bank Limited (SADBL) will issue a debenture with the terms ’10 years, 9%, Shangrila Development Bank Debenture 2087.’ From Ashad 6, 2078 BS, the debenture offering will begin. The issue will close on Ashad 9, 2078 BS if it is completely subscribed. If it remains under-subscribed until then, the application deadline will be extended to Ashad 20, 2078 BS.

The development bank is issuing a 750,000-unit debenture with a Rs 1,000 par value. As a result, the total sum raised is Rs 75 crores. SADBL would sell 4.5 lakh units for Rs 45 crores through private placement out of the entire issue size. Similarly, the general public is eligible to apply for the remaining 3 lakh units, worth Rs 30 crores. The mutual funds will get 5% of the total quota (or 15,000 shares) from the general public.

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The debenture will pay a 9% interest rate on a semi-annual basis. It has a ten-year maturity period. As a result, in 2087 BS, the bank will reimburse the principal.

A minimum of 25 units and a maximum of 3,00,000 units can be applied for.

The Securities Board of Nepal (SEBON) gave final permission to the debenture issuance on Baisakh 6, 2078 BS.

The debenture’s issuing manager is NIBL Ace Capital Limited.