NPBCL, merchant bankers sign agreement to manage fund for toll highway
Nepal Purwadhar Bikas Company Ltd (NPBCL) today signed an agreement with five merchant bankers to manage capital.
"The company has signed the agreement with Citizen Investment Trust, Nabil Capital, Vibor Capital, NMB Capital and NCM Capital to manage the fund," said the chairman of the company Kush Kumar Joshi.
The company has appointed Kriti Capital and Investment as the coordinator for the merchant bankers.
They will help the company find promoter shareholders, he said, adding that the company that has Rs 18 billion issued capital is floating Rs 16 billion worth ordinary shares and Rs 2 billion worth preferential shares. "The merchant bankers, apart from promoting the infrastructure project to attract investment, will also help the company issue the ordinary shares."
The promoters can invest in three installment – 30 per cent in the first year, 40 per cent in the second year and the remaining 30 per cent in the third year – apart from upto 10 per cent preferential shares – of the first installment – that attracts 10 per cent coupon rate, he added.
The first public company that is investing in an infrastructure project – a 58-km Kathmandu-Kulekhani-Hetauda tunnel road – has started the construction unofficially on November 11, though it is yet to officially inaugurate the construction.
The four-lane national toll highway that starts from Balkhu in Kathmandu will have three tunnels of a total length of 4.5 km apart from bridges and ends at Hetauda connecting the entire western southern and eastern plains through Hetauda.