Two Banks Get SEBON’s Green Light for Rs 4 Billion Debenture Issue

Nepal’s capital market just got more options for long-term investors. On Ashadh 7, Nepal’s Securities Board (SEBON) approved two banks to issue bonds worth a combined Rs 4 billion. This move could bring fresh interest from both institutional and general investors.

Here’s what’s happening:

• Nepal SBI Bank has received permission to issue Rs 3 billion worth of debentures.
• Shine Resunga Development Bank has been allowed to issue Rs 1 billion in bonds.

Key Details of the Bond Issuance:

1. Nepal SBI Bank Debenture

Issue Manager: Nabil Investment Banking

Name: Nepal SBI Bank Debenture

Total Units: 30 lakh bonds

Face Value: Rs 1,000 per bond

Private Placement: 18 lakh units

Public Offering: 12 lakh units

Maturity: 10 years

Interest Rate: 7% per annum

2. Shine Resunga Debenture

Issue Manager: NIMB Ace Capital

Name: Shine Resunga Debenture

Total Units: 10 lakh bonds

Face Value: Rs 1,000 per bond

Private Placement: 6 lakh units

Public Offering: 4 lakh units

Maturity: 10 years

Interest Rate: 8% per annum

These debentures offer a fixed return for the next 10 years—7% from SBI and 8% from Shine Resunga. While stock investments come with risks and volatility, bonds like these can give more stable returns, especially useful for those looking to diversify their portfolio.

Should You Consider Investing?

If you are a risk-averse investor or want to lock in stable income for the next decade, these bonds might be worth a closer look. Shine Resunga offers a slightly higher interest rate, but both are from trusted financial institutions.

Stay updated for the public issue dates if you’re planning to apply.