With the Issuance of NPR 1 Billion Debenture, Siddhartha Bank Expands Its Financial Capacity.

Siddhartha Bank Limited has successfully raised NPR 1 Arba (1,00,00,00,000) through private placement of debentures, marking a major capital mobilization effort by the bank. The issued debentures were placed under the name "10% Siddhartha Bank Debenture 2090", each with a face value of NPR 1,000, and totaling 10,00,000 units. The issuance was not made available to the public but rather privately placed with institutional investors. The maturity period of the debenture is 7 years with a fixed annual interest rate of 10%.

The debentures have been rated “ICRANP IR BBB+” by ICRA Nepal, indicating a moderate degree of safety regarding timely servicing of financial obligations, though the rating is currently under watch with negative implications. NMB Capital Limited acted as the issue manager for this private placement, and the due diligence certificate confirms compliance with necessary regulatory and procedural obligations. This strategic move aims to strengthen the bank’s long-term funding base, improve its capital adequacy ratio, and ensure sustained liquidity management. Siddhartha Bank has submitted all required documents, including the trustee agreement and debenture redemption reserve details, to the Securities Board of Nepal (SEBON) as part of regulatory compliance.