Explanation of NIC Asia Debenture 2091 Offering

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Explanation of NIC Asia Debenture 2091 Offering

NIC Asia Bank Limited is raising capital through a 10-year fixed-income security called the “7% NIC Asia Debenture 2091.” Here’s a detailed breakdown of what investors need to know:

Basic Structure of the Offering

This debenture offers a stable return with periodic interest payments and principal repayment after maturity.

Particulars Details
Total Amount NPR 5 Arba (5 billion)
Units Available 500,000 debentures
Face Value per Unit NPR 1,000
Interest Rate 7% per year (paid periodically)
Maturity Period 10 years (till 2091)

Who Can Apply?

  • General Public: 200,000 units (Rs. 2 Arba) are open for public subscription.
  • Institutional Investors: 300,000 units (60%) are reserved for private placement (large investors, companies, etc.).
  • Mutual Funds: 5% (50,000 units) are allocated for mutual fund investments.

Important Dates

  • First Chance to Apply: 25th–28th Chaitra 2081 (April 8–11, 2025).
  • Extended Deadline (if needed): If not fully subscribed, the deadline may stretch to 8th Baishakh 2082 (April 21, 2025).

How Much Can You Invest?

  • Minimum Investment: 25 units (Rs. 25,000)
  • Maximum Investment: 2,500,000 units (Rs. 25 Crore)
  • Issue Manager: Prabhu Capital Ltd. handles the process.

Why Consider This Debenture?

  • Steady Returns: The 7% annual interest is higher than many bank deposit rates.
  • Low Risk: As a bank-issued debenture, it is relatively safer than stocks.
  • Long-Term Stability: Suitable for investors looking for fixed income over a decade.

What If the Issue Isn’t Fully Subscribed?

The bank may extend the deadline to Baishakh 8, 2082, giving more time for investors to participate.

Final Thoughts

This debenture is a secure investment option for those seeking predictable returns in Nepal’s fluctuating financial market. Investors should assess their long-term financial goals before applying.

For applications, contact Prabhu Capital or NIC Asia Bank branches.