NRB selling Rs 15 billion in development bonds

Kathmandu, June 20

The Nepal Rastra Bank will offer Rs. 15 billion in development bonds. The development bonds will be issued for a five-year term, according to a statement released by the central bank today.

Banks and financial institutions, non-bank financial institutions, insurance companies, organizations, and Nepalese citizens will be eligible to buy the bonds, and the
interest rate will be determined through a bidding process. Bonds can also be used to get loans from banks and financial entities. Non-competition is another option for interested purchasers.

Competitors would be allowed to buy bonds worth 85 percent of the whole amount, or Rs
12.75 billion, while non-competitors will be able to buy bonds worth 15 percent of the total
amount, or Rs 2.25 billion.

The buyer will be allowed to acquire the equivalent of the number going to the remaining half divided by 50000 for a minimum of Rs. 50,000 and a maximum of Rs. 50,000. The bond’s second market transaction will take place on the Nepal Stock Exchange Limited.

The Nepal Rastra Bank will offer Rs. 15 billion in development bonds. The development bonds will be issued for a five-year term, according to a statement released by the central bank today.

Banks and financial institutions, non-bank financial institutions, insurance companies, organized entities, and Nepalese citizens will be eligible to buy the bonds, and the interest rate will be determined through a bidding process. Bonds can also be used to get loans from banks and financial entities.