Rastriya Banijya Bank (RBB) has begun issuing bonds worth Rs 2.50 billion starting today, following approval from the Nepal Securities Board. A total of 2.5 million bond units will be available in this offering.
These seven-year bonds carry an attractive annual interest rate of 7 percent. Investors can subscribe to a minimum of 25 units, with no upper limit other than the total available units. The bond issuance is being managed by Sanima Capital and will be open from April 23 until no later than May 4.
Of the total issue, 60 percent—or 1.5 million units valued at Rs 1.50 billion—has been earmarked for institutional investors. The remaining 40 percent—1 million units worth Rs 1 billion—has been allocated for the general public. Out of this public portion, 50,000 units are reserved for mutual funds, while individual investors can purchase the remaining 950,000 units.
CARE Ratings Nepal has assigned the bank a credit rating of ‘CARE NP A Plus’, indicating a strong capacity to meet its financial obligations.
RBB currently has an authorized capital of Rs 30 billion, with both its issued and paid-up capital standing at Rs 15.637 billion.
