Kumari Bank Limited has issued bonds. The bank has issued 10-year bonds with an interest rate of 11 percent. The bank has issued 300,000 shares of bonds worth Rs. 30 lakhs, with a face value of Rs 1,000 per share. Out of which 40 percent Rs. 1.2 million’s 12 lakhs shares worth will be sold to the general public and the remaining 60 percent Rs. 1.8 million’s 18 lakhs shares worth will be sold individually, the bank said.
5 percent of the bonds to be issued to the general public, i.e. 60,000 bonds, have been allocated collective investment funds. They can apply for a minimum of 25 shares to a maximum of 12 lakh shares in the bond. For the purchase of bonds, the application should be made as soon as possible by Bhadra 21 and if the complete application is not received by that period, the issuance period will be extended until Bhadra 31. Nabil Investment Bank Limited is the issuing and selling manager of the bank’s bonds. Investors can apply for C-ASWA member banks and financial institutions and purchase bonds.
In the credit rating given for the issuance of bonds, ECRA Nepal has given the bank ECRA NP Issuer Rating Triple B rating indicating medium credit risk. This indicates that the organization can meet its financial obligations on time and has moderate credit risk. Bonds can be listed in NEPSE and traded in the secondary market.
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