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.
