6% Everest Bank Debenture, 2061

Everest Bank Limited

Head Office, E.B.L House, Lazimpat

POB: 13384, Kathmandu, Nepal

Issues

“6% Everest Bank Debenture, 2061(2004)”

Redeemable after 7 years

Details

(Published Under the company law 2053(1996))

• Par Value: NRs. 1000/-
• Bond Capital: 3000 Millions (2500 Millions for individuals or united organizations and 500 Millions for public with marked price of NRs. 1000 per debenture.)
• Maturity Period: 7 years

Issued Debenture Capital amount according to explanation letter:

The Everest bank is issuing the redeemable “6% Everest Bank debenture, 2061” of capital amount 3000 Millions (marked price of NRs. 1000/- per bond and equals to 300 thousands bonds). Among the bond capital, 500 Millions is for public which is equals to 50 thousands bonds and 2500 Millions is issued for united organizations which equals to 250 thousands bonds.

Features of the debenture: This 6% “Everest Bank Debenture, 2061” is issued without the legislation of property for public. The maturity period of this bond is 7 years from the division of Bonds. The Debenture Redemption Reserve is created by the bank for redemption on decided 7 years duration. The bank will manage for the debenture redemption reserve of the bond from the third year for the redemption as soon as the expiry of maturity period. Profit and Loss Appropriation A/C is also formed for bearing the loss by the bank. After the redemption of the debenture, the amount in Debenture redemption reserve will be noted on Profit and Loss Appropriation A/C. 3000 Millions will be deposited in the reserve within 7 years. 50 Millions Is issued for public and 2500 Millions will be issued under the private placement. If the applications from the public exceeded that 50 millions, the bond will be divided with more priority on them. But capital amount will not exceed 70 Million for public while division. If the applications from public become less than 50 millions then the bond will be issued under private placement system.

Objectives to issue Debenture: The main objective to issue this 6%”Everest Bank Debenture, 2061” is to obey the legislation for capital reserve provided by Nepal Rastra Bank as well as to increase the assistance capital reserve.

Utilization of amounts received from debenture: The amount that is received from the debenture will be utilized for loans and investments.

Maturity: The maturity period of this debenture will be of 7 years from the date of division of debenture. After this period the bank will redeem the capital amount and interest of the last installation amount.

Interest Rate of Debenture:  the annual interest rate of this debenture is 6%. The income tax will be applied according to the current law on the earned total interest amount.

Interest Payment Period: The interest will be paid to all the owners of this debenture half yearly i.e. 6/6 months whether this bank is in profit or loss.

Interest Payment Timing: The earned interest amount will be redeemed end of first half-yearly (End of February) and Second Half-yearly (End of June). The interest amount will be redeemed on every fiscal year’s from Magh 1^st of First Half-Yearly to Shrawan 1^st.

Venue for Bond Redemption: The owners of this debenture bond can withdraw the earned interest amount from any branches of Everest bank by issuing bond certificate and interest redemption voucher.

Procedure to withdraw Bond Interest: 6% of per annum interest will be issued for the bond owners of 6%”Everest Bank Debenture, 2061” from the date of application to the date before the appropriation. The debenture bond certificate and interest coupon will be issued to the debenture owners.

Others: The owners can legislate the bond in any financial organization except Everest Bank for withdrawal of Loans.