NRB issuing development bonds worth Rs 13.10 billion today

Published On: October 1, 2023 02:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Oct 1: Today, Nepal Rastra Bank (NRB) is set to issue development bonds valued at Rs 13.10 billion. The central bank has announced that it will release the 'Development Bond 2088-C,' with an eight-year maturity period.

This bond offering is open to a wide range of investors, including banks, financial institutions, non-bank financial institutions, insurance companies, organized entities, and individual citizens. Interested parties can participate in the bidding process until 3 PM today.

The interest rate for this bond, which will be paid on October 2, 2031, will be determined through negotiations. Additionally, the NRB has specified that interest payments will be made semi-annually, and taxes will apply to the accrued interest.

The interest rates accepted through the bidding process will be arranged in ascending order, and the final cutoff interest rate will be maintained at a single rate until the allotted amount is distributed.

Potential buyers of these bonds have the option to participate competitively or non-competitively. Competitive bidders will be allotted 85 percent of the issued amount, while non-competitive bidders will receive 15 percent. In the bidding, it is possible to buy at least 50,000 and at most, without increasing the limit of the total issued amount. 

The NRB has also stated that secondary market transactions for these bonds will take place through the Nepal Stock Exchange Limited.


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