SEBON approves Everest Bank’s bond issuance worth Rs 3 billion

KATHMANDU, JANUARY 29: The Nepal Securities Board (SEBON) has granted approval to Everest Bank Limited for the issuance of bonds worth Rs 3 billion, totalling 3 million units.

The board yesterday authorized the bank to issue these bonds, which will have a tenure of 10 years and offer an interest rate of 7.50%. Of the total issuance, 1.2 million units, valued at Rs 1.2 billion, will be made available to the general public through a public offering, while the remaining 1.8 million units, amounting to Rs 1.8 billion, will be sold through private placement. Laxmi Sunrise Capital Limited has been appointed as the issue manager for the bond offering.

Investor interest in bonds has been on the rise in recent times. Previously, ICFC Finance issued 300,000 bond units worth Rs 300 million with a 7-year tenure at an interest rate of 9%, which was oversubscribed within a short period.

Analysts have noted that while rights shares are increasingly going unsold and entering auction, the strong demand for bonds highlights the impact of declining interest rates in banks and financial institutions.

Following SEBON’s approval, Everest Bank will proceed with the necessary steps to execute the bond issuance.