Sebon approves Nepal Bank's right share issue

Securities Board of Nepal (Sebon) has approved the issuance of rights shares of Nepal Bank.

"We are planning to issue rights shares worth Rs 3.61 billion by mid-May," said coordinator of the management team of Nepal Bank Maheshwor Lal Shrestha. "After the rights shares are issued, the bank's paid up capital will be Rs 4 billion. At present, the bank's paid up capital stands at Rs 380 million."

The oldest bank of the country is planning to issue 9.5:1 rights share under its recapitalisation plan. "The government has already paid Rs 1.37 billion as its rights share," he said, adding that the government has 40.49 per cent share in the bank. "The bank's employees have also paid their sum for the rights shares."

Nepal Bank is in final talks with its issue and sales manager — Citizen Investment Trust (CIT). "Immediately after the issue manager's nod, we will go for the issue," Shrestha added.

The bank had recently — after nine years — relisted its 3.83 million units of shares at Nepal Stock Exchange which had earlier delisted the shares.

The bank is under the direct control of Nepal Rastra Bank (NRB) that has recently extended the management control for nine more months to complete the recapitalisation process.