Company Profile:
With a vision to be the nodal financial institution of the nation for infrastructure development, the bank started its commercial operation in March- 06, 2019. Nepal Infrastructure Bank Limited (NIFRA) is established as a National Level Infrastructure Development Bank with the focused objective of accelerating the development of infrastructure of the nation. The bank obtained the operating license from Nepal Rastra Bank on Feb-11, 2019. The bank focuses on infrastructure financing by raising resources from the domestic and international markets through equity, debt, mezzanine, and sector fund structures, issuing on-shore and off-shore bonds and debenture.
The bank was promoted by 41 promoters which include the Government of Nepal with 17% stake, Private sectors (35%), Life Insurance Companies (27%), Nepal Reinsurance Company Limited (4%), and individuals related to leading private business houses of Nepal.
As of 1st quarter of FY 2077/2078, the company reported a total interest income of Rs. 28.95 crores with a net profit of Rs. 18.01 crores. The company reported earnings per share of Rs. 6 and Net worth per share of Rs. 115.12.
About the Issue:
The company is issuing 8 crore units as IPO to the general public at the par value of Rs. 100 per share to raise a capital worth Rs. 8 Arba.
The company is set to issue a total of 8,00,00,000 units of shares from Magh-02, 2077. A total of 1,60,000 units i.e., 0.20% worth Rs, 1.60 crores is segregated for the employees of the company, and a total of 40,00,000 units shares worth 40.00 crores i.e., 5% of total units is segregated for a mutual fund. The remaining 75,840,000 unit shares are for the general public. The earliest closing date is Magh-06, 2077. If the issue is not subscribed till the earliest closing date then the issue will be extended till Magh-16, 2077.
NIBL Ace Capital Limited has been appointed as the issue manager.
| Nepal Infrastructure Bank Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 200,000,000 | 20,000,000,000 |
| Total Issue to general public (IPO) | 40% | 80,000,000 | 8,000,000,000 |
| Employees | 0.20% of IPO Units | 1,60,000 | 16,000,000 |
| Mutual Fund | 5% of IPO Units | 40,00,000 | 400,000,000 |
| Public | 95.80% | 75,840,000 | 7,584,000,000 |
| Issue Manager | NIBL Ace Capital Limited | ||
| Issue Open Date | Magh -02, 2077 | ||
| Issue Closing Date (earliest) | Magh -06, 2077 | ||
| Issue Closing Date (late) | Magh- 16,2077 | ||
| Minimum application | 10 | ||
| Maximum application | 20,000,000 |
ICRA Rating:
ICRA Nepal has assigned as issuer rating of [ICRANP-IR] BBB pronounced ICRA NP issuer rating triple B) to Nepal Infrastructure Bank Limited.
Grading Strengths:
- Strong ownership and seasoned management team
- Positive demand outlook gave the need to reduce interest rate volatility in long-term project financing
- Lean organization and lower operating cost could increase competitiveness on the lending front
- Strong capitalization remains a comfort against probable credit shocks
Key Challenges:
- The inherent risk in infrastructure financing and high concentration risk could lead to asset quality concern
- Raising long-term funds at competitive rates remains a challenge
- Challenges in scaling up credit portfolio could suppress medium-term profitability outlook
Board Members:
| Board of Directors | |
|---|---|
| Name | Position |
| Mr. Mr. Anuj Agrawal | Chairman |
| Mr. Shree krishna Nepal | Director |
| Mr. Chandra Prasad Dhakal | Director |
| Mr. Lalmani Joshi | Director |
| Management Team | |
|---|---|
| Name | Position |
| Mr. Bhupendra Pandey | Officiating Chief Executive Officer |
| Mr. Surya Bahadur Tamang | Deputy General Manager-Business |
| Mr. Binaya Nath Neupane | Deputy General Manage |
| Mr. Suwarn Kumar Singh | Head-Risk Management |
| Mr. Rabin Shrestha | Head-Infrastructure Financing |
The objective of IPO Issuance:
| The objective of the Issue | |
|---|---|
| Loan and Advances | Rs. 4,320,000,000 |
| Other Investment | Rs. 3,680,000,000 |
| Total | Rs. 8,000,000,000 |
Capital Structure:
| Capital Structure | |
|---|---|
| Authorized Capital | 40,000,000,000 |
| Issued Capital | 20,000,000,000 |
| Current Paid-Up Capital | 12,000,000,000 |
| Capital after IPO Issuance | 20,000,000,000 |
Shareholding Pattern:
| Number of shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoter Shareholders | 120,000,000 | 12,000,000,000 | 60% | Already Issued |
| General Public | 80,000,000 | 8,000,000,000 | 40% | To be issued |
| Total | 200,000,000 | 20,000,000,000 | 100% | – |
Financial Highlights:
| Particulars | Actual | Estimated* | ||||
|---|---|---|---|---|---|---|
| 2074/2075 | 2075/2076 | 2076/2077 | 2077/2078 | 2078/2079 | 2079/2080 | |
| Total Paid-Up Capital (‘000) | 6,000,000.00 | 12,000,000.00 | 12,000,000.00 | 20,000,000.00 | 21,600,000.00 | 22,900,000.00 |
| Reserve & Surplus (‘000) | 119,700.00 | 788,971.00 | 1,634,826.00 | 2,299,345.00 | 2,276,052.00 | 2,931,272.00 |
| Deposit from customers (‘000) | 0.00 | 200,000.00 | 250,020.12 | 1,000,000.00 | 3,000,000.00 | 9,565,000.00 |
| Loan and Advances (‘000) | 0.00 | 76,495.77 | 575,356.34 | 18,012,221.00 | 29,446,976.00 | 39,813,330.00 |
| Interest Income (‘000) | 179,410.53 | 1,135,791.89 | 1,253,682.72 | 1,355,446.00 | 3,084,197.00 | 3,943,733.00 |
| Interest Expenses (‘000) | 0.00 | 2,351.37 | 23,018.50 | 66,885.00 | 602,413.00 | 966,809.00 |
| Operating Profit (‘000) | 161,249.04 | 161,414.19 | 1,101,697.64 | 1,039,239.00 | 2,370,108.00 | 2,890,157.00 |
| Net Profit (‘000) | 119,700.37 | 669,270.30 | 847,145.19 | 725,217.00 | 1,656,705.00 | 2,020,220.00 |
| Earnings per share (Rs.) | 2.00 | 6.1 | 7.06 | 5.58 | 7.67 | 8.82 |
| Net Worth per share (‘000) | 51.00 | 106.57 | 113.62 | 117.69 | 110.54 | 112.8 |
| Return on Equity (‘000) | 1.96% | 5.23% | 6.21% | 3.25% | 6.94% | 7.82% |
