Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Infrastructure Bank Limited is launching its ‘NIFRA Green Energy Bond 2088/89,’ with the issuance and sale opening on June 1, 2025. The bond, aimed at funding sustainable energy projects, carries a 7-year maturity period and a face value of NPR 1,000 per unit. Investors will receive an annual interest rate of 6%, making it an attractive opportunity for those seeking stable returns.
Krishna Bahadur Adhikari, NIBL’s Chief Executive Officer, announced that the bank will issue 5 million bond units, totaling NPR 5 billion. Of this, 60% (3 million units worth NPR 3 billion) is reserved for institutional investors, while the remaining 40% (2 million units worth NPR 2 billion) will be available for the general public. Additionally, 100,000 units from the public allocation are set aside for collective investment funds, ensuring broad participation. The bond issuance allows investors to apply for a minimum of 25 units and a maximum of 1 million units.
Applications will be accepted from June 1 to June 4, 2025, with an extension to June 15, 2025, if the bonds are not fully subscribed. This flexibility aims to maximize investor participation in Nepal’s growing green energy sector.
ICRA Nepal has rated NIBL with an ‘ICRA NP Issuer Rating Triple B,’ indicating moderate financial security for meeting obligations. This rating enhances investor confidence in the bond’s reliability. NIMB Ace Capital Limited is managing the issuance and sale, ensuring a streamlined process. Investors can apply through ASBA-participating banks and financial institutions, their designated branches, or online via CDS and Clearing Limited’s ‘Mero Share’ platform, as approved by the Nepal Securities Board.
This bond issuance underscores NIBL’s commitment to sustainable development and infrastructure growth in Nepal. With the energy sector poised for expansion, the ‘NIFRA Green Energy Bond’ offers a unique opportunity for investors to contribute to eco-friendly initiatives while securing financial returns.
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