Fiscal Nepal
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KATHMANDU: ICFC Finance Limited has opened the issuance and sale of its debenture from today (Falgun 11), aiming to mobilize long-term resources through the capital market.
The company has launched the “8% ICFC Finance Limited Debenture 2089”, a seven-year instrument carrying a fixed annual interest rate of 8 percent. The debenture has a face value of Rs 1,000 per unit, with a total issue size of 5 lakh units worth Rs 5 billion.
Out of the total issuance, 3 lakh units worth Rs 3 billion will be privately placed among selected investors, while the remaining 2 lakh units worth Rs 2 billion will be offered to the general public. Of the public portion, 5 percent (10,000 units) has been reserved for mutual funds.
Investors applying for the debenture must apply for a minimum of 25 units, while the maximum application limit has been set at 2 lakh units. The issue is scheduled to close early on Falgun 14, and if not fully subscribed, it will remain open until Falgun 25.
The issue manager for the debenture is Kumari Capital Limited. Interested investors can apply through banks and financial institutions participating in the ASBA system approved by the Securities Board of Nepal, using the C-ASBA application process from designated branches.
For the issuance, credit rating agency CARE Ratings Nepal has assigned the company a CARE-NP BBB- (Issuer Rating), indicating a moderate degree of safety regarding the timely servicing of financial obligations.
Interest earned from the debenture will be paid to investors after tax deduction, twice a year — following the end of the first half and second half of each fiscal year.
The issuance is expected to support ICFC Finance’s long-term lending capacity while also providing investors with a fixed-income investment option in Nepal’s growing corporate debt market.
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