The bank has announced that 50 million units of non-redeemable non-reserve preference shares have been allotted at a face value of Rs 100 per share.
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Nabil Bank Limited has allotted ‘Nabil 8 percent non-redeemed non-cumulative preference shares’ worth Rs 5 billion. The bank has stated that 50 million units of non-redeemed non-cumulative preference shares have been allotted at a face value of Rs 100 per unit.
After the approval of the Nepal Securities Board, the bank made the final distribution of preference shares on Poush 1. The preference shares were distributed as per the applications received by inviting proposals from institutional investors through the circular method (individual basis).
After Nepal Rastra Bank and the Nepal Securities Board made policy arrangements regarding irredeemable non-cumulative preference shares, Nabil Bank has received approval from the Nepal Securities Board for the first time to issue such preference shares.
Irredeemable non-cumulative preference shares are capital market instruments with no fixed payment period but with the feature of receiving fixed dividends in the year the bank earns distributable profits. The bank claims that after issuing this instrument, the capital base of the bank will be strengthened through additional primary capital, which will increase the risk-bearing capacity of the bank and will further help in business expansion.
