The Securities Board of Nepal (SEBON) has approved a development bank’s plan to issue 3.5 million units of unredeemable, non-cumulative preference shares. Priced at Rs 100 per unit with a 9 percent dividend rate, the issuance was endorsed by the bank’s 18th annual general meeting. The move is expected to strengthen the bank’s capital base and help expand its operations. The approval follows a recent Nepal Rastra Bank circular allowing BFIs to issue such shares as an alternative to rights shares to bolster capital adequacy.
