Nepal's RBB completes $19.8M debenture at 6% coupon
What's the deal? Rastriya Banijya Bank (RBB)Dealroom has a profile for this one. Try Dealroom → has completed the allotment of its seven-year debenture, raising NPR 3 billion (roughly $19.8 million) from investors. The fully state-owned commercial bank issued 3 million units at NPR 1,000 each, carrying a fixed 6% annual coupon under the "6% RBBL Debenture 2089" issue.
How it was structured: RBB allocated 60% of the offering — 1.8 million units worth NPR 1.8 billion — for private placement. The remaining 40%, worth NPR 1.2 billion, went to the public, with 5% of that (60,000 units) reserved for mutual funds.
The details: Kumari Capital Limited served as the issue and sales manager, and the debenture earned a "CARE-NP Single A Plus" rating from CARE Ratings Nepal. Interest will be paid semi-annually, after tax, with a minimum application of 25 units.
Why now? The raise reflects continued reliance on debt securities by Nepal's banks for long-term capital. Nepal BankDealroom has a profile for this one. Try Dealroom →'s disclosed subordinated debt carries an 8.5% rate, while Nabil BankDealroom has a profile for this one. Try Dealroom → recently sought approval for a 10-year, 5.5% debenture.
By the numbers: RBB's 6% coupon sits between those examples, despite a shorter maturity than Nabil's proposed issue. The allotment stands out as a substantial long-term funding raise by a wholly state-owned lender, though available reports do not disclose how much investor demand exceeded the offer.
The signal: This is a modest raise by global standards — it ranks in the bottom tier of funding deals by size. But it underscores how Nepal's banks are leaning on fixed-income instruments to secure long-term capital at rates that remain attractive to domestic investors.
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