Himal Press 
KATHMANDU: Debentures worth Rs 14.26 billion are in the pipeline.
According to the Securities Board of Nepal (Sebon), five financial institutions, including four commercial banks, have sought approval to float debentures totaling 14.26 million.
A debenture is a type of long-term debt instrument through which investors lend money to an institution in exchange for periodic interest payments at a fixed interest rate. Debentures are also traded on the Nepal Stock Exchange.
Four commercial banks and one finance company have applied to the Sebon to issue 14.26 million units with a face value of Rs 1,000 each. Of the total issue, 4.50 million units will be offered to the general public, while the institutions themselves will issue the remaining 8.55 million units.
NMB Bank has sought approval to issue 5 million units of NMB 7% Power Bond 1 worth Rs 5 billion. Similarly, Prime Commercial Bank, Citizens Bank International, and Laxmi Sunrise Bank have each applied to issue 3 million units of debentures to raise Rs 3 billion each, while Guheshwori Merchant Finance is seeking to raise Rs 260 million by issuing 260,000 units.
While the debentures of NMB Bank and Guheshwari Merchant will mature in seven and eight years, respectively, the offerings of the other three commercial banks will have a maturity of 10 years.
Guhehwari Merchan has offered the highest interest rate of 8%, while Citizens is offering 7%, and NMB Bank and Laxmi Sunrise are offering 7% each. Prime Commercial Bank has offered the lowest interest rate of 6.25%.
