Hydropower producers seek changes to proposed IPO rules
Summary
Hydropower producers in Nepal have asked SEBON to soften draft IPO rules, saying the proposed requirements could block projects under construction from raising public funds. IPPAN wants sector-specific provisions on operating status, net worth, debt-equity ratios and fit-and-proper checks.
Key Points
- IPPAN has urged SEBON to revise draft public-issuance rules so they reflect the capital-heavy nature of hydropower projects.
- The association says requirements such as continuous operation, minimum net worth and debt-equity checks could block IPOs for projects still under construction.
- IPPAN has proposed sector-specific IPO criteria, including a separate checklist and allowing applications once projects reach about 65 percent physical progress.
- It has also asked SEBON to apply the new rules only to future applicants and give existing IPO applicants a transition period.
