NIC ASIA Bank Limited has officially appointed NIMB ACE Capital Limited as the issue and sales manager for its upcoming rights share issuance in the ratio of 2:1, marking a major step toward strengthening the bank’s capital base.
Under the proposed plan, the bank will move ahead with the issuance after obtaining the remaining regulatory approvals and completing all required procedures.
Earlier, the proposal had received approval from Nepal Rastra Bank (NRB).
Bank to Issue 74.58 Million Rights Shares
According to the bank’s announced plan, NIC ASIA Bank intends to issue 74.58 million rights shares at a face value of Rs. 100 per share.
The total size of the offering represents 50 percent of the bank’s existing paid-up capital of Rs. 14.91 billion.
Under the 2:1 rights ratio, eligible shareholders will receive the opportunity to apply for two new shares for every one share currently held, subject to the terms and conditions of the issue.
Rights shares allow existing shareholders to invest additional capital while maintaining proportional ownership in the company.
Objective: Strengthen Capital and Support Expansion
The bank stated that proceeds raised through the rights offering will primarily be used to:
- Strengthen the bank’s capital structure,
- Improve the capital adequacy ratio,
- Support future business expansion,
- Enhance long-term strategic growth initiatives.
Strengthening capital adequacy remains an important focus for banks as regulatory requirements and growth ambitions continue to evolve.
Agreement Signed Between Bank and Issue Manager
The agreement for managing the rights issuance process was formally signed by:
- Rupesh Luite, Chief Financial Officer of NIC ASIA Bank Limited, and
- Sachindra Dhungana, Deputy Chief Executive Officer of NIMB ACE Capital Limited.
The signing marks the beginning of the operational phase of the issuance process, with further announcements expected regarding record dates, application schedules, and regulatory approvals.
Once completed, the rights offering is expected to become one of the notable capital-raising exercises in Nepal’s banking sector, reflecting continued efforts by financial institutions to reinforce balance sheets and support future growth.
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