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I guess 6% is the cheap money adbl is getting from investment. And they have to pay dividend if there is profit only. Its not a cumulative one. So its worth for adbl if its not redeemed.

bunkureji, budget bhashan le ta share transfer ko kura garyo. yo debenture ko kura price badhaune sajis matra hoina ra?

dear thirdeye,
1. In Next six years NEPSE will be in next bullish trend.
2. there will be same effect as saving amount withdrawn by any account holder with 6 arba if it has to pay 6 arba debenture. (Means it will have no effect for the bank that have more than 66 arba in deposits) Do not forget that if there is some amount in liabilities side of balance sheet it has proportionate effect at assets side of balance sheet if company is not in loss and reserve is also in credit figure which means that company has capacity to pay out that liability.

tyo bela samma market bearish bhayera ADBL ko share price 1-2 saye ma napugla bhanna sakinna. arko tira budget bhashanle debenturema parinat garne kurolai galat sabit garidiyenara. yedi debenture mature bhayera 6 arab tirna pare ADBL ko halat ke hola?

Fundamentally conversion of preferential shares into debenture will have no effect,but if we analyse it's strategical effect there will be two effects,including others, of conversion of preferential share into debenture.

1. At first sight anyone sees the Paid up Capital of ADBL and get scared thinking that it will not give bonus share soon(since majority of investor look for bonus shares), when preferential stock of about 6.4 Arba will be converted into debenture, then it's Paid up Capital will be about 3.2 Arba. Which will result into very good sentimental effect on investors.
2. 6% is very high rate of payment which is being paid to it's preferential stocks as of now. Since it can get fund in very low rate i.e. 0,1,2,3,4,5 % because it has trust of state own bank. Now one million dollar question is: what will be the effect of conversion of preferential stock into debenture?
Once it's converted into debenture it will have a fixed term i.e. 5/6/7/8 year, after that bank will payout all debenture amount which has load of 6% expense per year, it will dramatically pull down the Interest expense of Bank which will result into incline of profit and return to share holders.

I think it's a horse of long race.