KATHMANDU – Buddhabhumi Nepal Hydropower Company Limited (BNHC) has officially announced the opening of its right shares issuance beginning Chaitra 22. The company moves to double its current paid-up capital through a 1:1 ratio offering to existing shareholders.

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Official Notice

Buddhabhumi Nepal Hydropower to Launch 100% Right Share Issue from Chaitra 22

Issue Details and Capital Structure

The hydropower developer is set to issue 4 million units of right shares at a face value of Rs 100 per share. This issuance will mobilize Rs 400 million in capital.

Currently, BNHC holds a paid-up capital of Rs 400 million. Upon the successful completion and distribution of this 100% right issue, the company’s total paid-up capital will surge to Rs 800 million.

Eligibility and Deadlines

Investors who held or traded shares on the Nepal Stock Exchange (NEPSE) until Magh 29 are eligible to apply, as the company executed its book closure on Falgun 1. The application window is scheduled to remain open until Baisakh 13, 2083.

Debt Management Strategy

The primary objective of this capital hike is to strategically repay institutional debt. BNHC currently carries an outstanding loan balance of approximately Rs 969.09 million distributed across four commercial banks:

Siddhartha Bank
Machhapuchhre Bank
Global IME Bank
Kumari Bank

By using the Rs 400 million raised from shareholders, the company aims to reduce its total debt to Rs 569.09 million, significantly lowering interest costs and improving its financial position for project operations.

Credit Rating and Risks

Infomerics Credit Rating Nepal has assigned an ‘IRN Double B’ issuer rating to the company for this issuance. According to the rating agency, this grade indicates a medium risk regarding the company’s ability to meet its financial obligations on time.

How to Apply

NIC Asia Capital Limited has been appointed as the issue and sale manager. Eligible investors can submit applications through several channels:

Physical Locations: NIC Asia Capital office, BNHC’s corporate office in Panipokhari, the Thaprek (Nuwakot) powerplant, and designated NIC Asia Bank branches in Biratnagar, Birgunj, Narayanghat, Pokhara, Butwal, Nepalgunj, Dhangadhi, and Surkhet.
Digital Platforms: Applications can be submitted online via the Mero Share software or through C-ASBA-certified banks and financial institutions.