NDB to raise Rs. 8 b via debentures

NDB to raise Rs. 6.5 b via debentures National Development Bank (NDB Bank) has announced plans to raise Rs. 6.5 llion via five-year BASEL II compliant, Tier 2 listed, rated, unsecured, subordinated redeemable debentures with a non-viability conversion. Initially it is proposed to issue 50 million such debentures at Rs. 100 each and a further 15 million each in the event of oversubscription of original amount..

The debenture issue is subject to regulatory and shareholder approval.

NDB last raised Rs. 5.6 billion via a similar debenture in March 2019 last year. The previous issue offered a fixed rate of 13.5% per annum payable semi-annually and a fixed rate of 13.95% payable annually.

Editor's Note: This article was updated from the print version to reflect correct figures.