Siddhartha Bank Limited Debenture 2072

Siddhartha Bank Limited

Head Office: HATTISAR, Kathmandu, Nepal

Issues

7 years Redeemable

8.5% Siddhartha Bank Limited Debenture 2072

(Published under the Company Law 2063)

Details

The Bank issued Siddhartha Bank Limited Debenture 2072 in FY 2008/09 for Rs.228 million.

Main features of Siddhartha Bank Limited Debenture 2072 are as follows:

• Maturity period: 7 Years.
• Interest rate: 8.5% per annum.
• Interest Payment frequency: Half Yearly.
• Claim in case of liquidation: After depositors.
• Debenture Redemption Reserve shall be created to redeem the Bond at Maturity.
• The debenture can be pledged with other banks and financial institution.

The Siddhartha bank limited debenture 2072 has been listed on Nepal stock exchange from Asadh 23, 2067 (2010 July 7 Wednesday) while the trading of the debentures was started from Asadh 30, 2067 (2010 July 14 Wednesday). There are total 227,770 units of debenture of Rs. 1000 each.

Issue Manager: ACE Development Bank Limited

Issued Bond Capital Amount:

The bond capital of NRs. 228 Million issued by the bank under 8.5% “Siddhartha Bank Debenture, 2072” (which is equals to 228 thousands bonds of the marked price 1000/- per bond).

Other information about the 8.5% “Siddhartha Bank Limited Debenture 2072” is as follows:

Features of Debenture:

This 8.5% “Siddhartha Bank Limited Debenture 2072” is issued without pledging the 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. 228 Millions will be deposited in the reserve within 7 years.

Objectives to issue Debenture:

The main objective to issue this 8.5% “Siddhartha 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% “Siddhartha Bank Debenture, 2072” will be utilized for loans and investments in different sectors.

Maturity Period of Debenture:

The maturity period of this 8.5% “Siddhartha 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% “Siddhartha Bank Debenture, 2072” half yearly i.e. 6/6 months whether this bank is in profit or loss.

Interest Payment Frequency:

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 Siddhartha 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% “Siddhartha 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 Siddhartha 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.