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|
|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|
|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|
ICRA Nepal has assigned as issuer rating of [ICRANP-IR] BBB pronounced ICRA NP issuer rating triple B) to Nepal Infrastructure Bank Limited.
- 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
- 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 of Directors|
|Mr. Mr. Anuj Agrawal||Chairman|
|Mr. Shree krishna Nepal||Director|
|Mr. Chandra Prasad Dhakal||Director|
|Mr. Lalmani Joshi||Director|
|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|
|Current Paid-Up Capital||12,000,000,000|
|Capital after IPO Issuance||20,000,000,000|
|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 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%|