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.
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.
