Siddhartha Bank has received approval to issue preference shares from the Nepal Securities Board, bringing the total number of banks permitted to issue such shares to four. The Securities Board has authorized the bank to issue NPR 3.5 billion worth of unissued preference shares, which will comprise 35 million shares at an assigned value of NPR 100 each.
The dividend rate for Siddhartha Bank’s preference shares has been set at 8.25%, and the dividend will only be distributed in years when the bank reports a profit. NMB Capital has been appointed as the issue manager for the share issuance.
Previously, in the commercial banking sector, Nabil Bank and NMB Bank, and in the development banking sector, Kamana Sewa Bikas Bank had obtained permission to issue preference shares. Nabil Bank was allowed to issue NPR 5 billion, NMB Bank NPR 3 billion, and Kamana Sewa Bikas Bank NPR 350 million worth of preference shares.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
