Nabil Bank allots Rs 5 billion non-cumulative perpetual preference shares
The bank distributed five million shares, each with a face value of Rs 100, following approval from the Securities Board of Nepal (SEBON).
KATHMANDU: Nabil Bank Limited has successfully allotted Rs 5 billion worth of “Nabil 8% Non-Cumulative Perpetual Preference Shares.”
The bank distributed five million shares, each with a face value of Rs 100, following approval from the Securities Board of Nepal (SEBON).
The final allotment of the preference shares was completed on Dec 16, after inviting applications from institutional investors through a circular-based process.
This marks the first time Nabil Bank has received SEBON approval to issue non-cumulative perpetual preference shares, following policy guidelines set by the Nepal Rastra Bank and SEBON.
Non-cumulative perpetual preference shares do not have a fixed maturity period, but investors are entitled to a fixed dividend in years when the bank earns distributable profits.
The issuance of this instrument is expected to strengthen the bank’s capital base through additional Tier 1 capital, enhancing risk-bearing capacity and supporting further business expansion.
Nabil Bank, a leading financial institution in Nepal, serves over 2.5 million customers across 268 branches and 321 ATMs nationwide.
Over the past four decades, the bank has played a pioneering role in introducing innovative banking services and contributing to the development of Nepal’s banking sector.
