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Citizens Bank’s debenture issue oversubscribed despite current pandemic, allotment process concluded

By: Nepse Direct Apr 11, 2020

Citizens Bank International (CZBIL)  CZBIL  0.54 %  186.00  had closed the issue of "10.25% Citizens Bank Rinpatra 2086" on Chaitra 4, 2076. This debenture issue was open since Falgun 20, 2076.mThe Bank is providing 10.25% interest which is more than the fixed deposit interest rate that most of the bank currently providing.

Global IME Capital is the issue manager of the debenture issuance. As per the issue manager, the issue received excess application worth Rs.12 Crore than the actual issue. The officials added that receiving such a response in the current situation is a positive indicator. The BOD meeting held today decided to allot the debentures.

The bank issued a total of 25 lakh units debentures at a par of Rs 1000 per unit to collect a total of Rs 2.5 arba. Out of the total units, 15 lakh units had been separated for private placement and 10 lakhs will be issued to the general public. Similarly, from the units separated for the general public 5% or 50,000 units were reserved for the mutual fund.

The debentures will be yielding interest rate of 10.25% paid quarterly. The debentures will mature after a period of 10 years.

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