Rastriya Banijya Bank Opens Rs 3 Billion Debenture Issue Offering 6% Annual Interest

Rastriya Banijya Bank Limited has opened the issuance and sale of its 6% RBBL Debenture 2089 from Ashoj29, offering a seven-year investmentterm with an annual interest rate of 6%. The bank plans to issue 3million debenture units at a face value of Rs 1,000 each, amounting to a totalissue size of Rs 3 billion. Of thetotal issue, 60 percent, equivalent to 1.8 million units worth Rs 1.8 billion, will be allocated throughprivateplacement, while the remaining 40 percent, or 1.2 million units worth Rs 1.2 billion, will be offered tothe general public. Of the portion reserved forthe public, 60,000 units, representing 5 percent, have beenset aside for mutual funds. Investors must apply for a minimum of 25 units and mayapply for up to the entireissue size. The issue will close early on Kartik 10 or, at the latest, on Kartik 12. Kumari Capital Limited hasbeenappointed as the issue and sales manager. Eligible investors can submit applications through C-ASBAparticipating banks and financialinstitutions, their designated branches, or the Mero Share online platformoperated by CDS and Clearing Limited. CARE Ratings Nepal hasassigned the bank a CARE-NP Single A PlusIssuer Rating, indicating an adequate degree of safety regarding the timely fulfillment offinancialobligations. Interest earned on the debenture will be paid after the completion of the first andsecond half-year periods of each fiscal year,subject to applicable tax deductions. The debenture offersinvestors a fixed annual interest rate over its seven-year tenure, although investorsshould consider theirfinancial objectives and the terms of the issue before investing.