8.5% “Laxmi Bank Debenture, 2072

Laxmi Bank Limited

Adarshanagar, Birgunj, Parsa, Nepal

Corporate Office: Hattisaar, Kathmandu

Issues

7 years Redeemable

8.5% “Laxmi Bank Debenture, 2072”

(Published under the Company Law 2063)

Details

Par Value: 1000/- per bond

Bond Capital: NRs. 350 Million

Maturity Period: 7 years

Interest Rate: 8.5% per annum

It is notified that among the bond capital of NRs. 350 Million (which is equals to 350 thousands bonds of the marked price 1000/- per bond), 70 Million (equals to 70 thousands bonds) will be issued for public while 280 Million (equals to 280 thousands bonds of price 1000/- each) will be issued to different individuals or organizations under Private Placements system.

Permission Granted date from the Stock Exchange Board: 2065/06/13

Registration date of Bond details in Company Registrar: 2065/06/15

Issue Manager: NMB Bank Limited

Issued Bond Capital Amount:

The bond capital of NRs. 350 Million issued by the bank under 8.5% “Laxmi Bank Debenture, 2072” (which is equals to 350 thousands bonds of the marked price 1000/- per bond), among the bond capital amount, 70 Million (equals to 70 thousands bonds) will be issued for public while 280 Million (equals to 280 thousands bonds of price 1000/- each) will be issued to different individuals or organizations under Private Placements system.

Other information about the 8.5% “Laxmi Bank Debenture, 2072” is as follows:

Features of Debenture:

This 8.5% “Laxmi Bank Debenture, 2072” is issued without the pledge 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 1^st 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. 350 Millions will be deposited in the reserve within 7 years. 70 Millions Is issued for public and 280 Millions will be issued under the private placement. If the applications from the public exceeded that 70 millions, the bond will be divided with more priority on them. If the applications from public become less than 70 millions then the bond will be issued under private placement system and if the application for bond that is separated for private placement becomes less 280 Millions, then they will be sold to the public.

Objectives to issue Debenture:

The main objective to issue this 8.5% “Laxmi Bank Debenture, 2072”is to

Increase the investment for Bank Services

Increase the Supplementary Capital

Increase the needed capital for fulfilling the objectives of the Bank.

Utilizing the received capital from debenture:

The amount that is received from the 8.5% “Laxmi Bank Debenture, 2072” will be utilized for loans and investments in different sectors.

Maturity Period of Debenture:

The maturity period of this 8.5% “Laxmi Bank Debenture, 2072” will be of 7 years from the date of division of debenture. After this period the bank will redeem the capital amount and the due amount of interest of last installation amount.

Coupon Interest Rate:

The annual interest rate of this debenture is 8.5%. 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 8.5% “Laxmi Bank Debenture, 2072” 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 June) and Second Half-yearly (End of December). The interest amount will be redeemed from July 1^st of 1^st half-yearly and from January 1^st of 2^nd half-yearly of that fiscal year.

Venue for Interest Payment:

The owners of this debenture bond can withdraw the earned interest amount from any branches of Laxmi 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 8.5% “Laxmi Bank Debenture, 2072” 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 stock the bond in any financial organization except Laxmi Bank for withdrawal of Loans.

Limited Liability:

This bank is public limited company established under the Bank Company Law, 2063 and running under the financial company law, 2063. The bond owner is under the limited liability within the amount of Share bought by the owner. Owner will not have to liable his property except for the amount of the share he has bought.