NRB to issue development bond worth Rs 13.10 billion

The Nepal Rastra Bank (NRB) is set to issue a development bond worth Rs 13.10 billion today. The central bank is going to issue the eight-year ‘Development Bond 2088-C’ through a bid.

The bond can be purchased by banks and financial institutions, non-bank and financial institutions, insurance companies, incorporated organisations and ordinary citizens. One can participate in bidding until 3 pm today.

Interest rates of this bond to be paid on 2 October, 2031 will be determined through negotiation. Interest payments will be made biannually, and interest tax charged on the accrued interest, said the central bank.

The interest rate accepted through the bidding process will be arranged in order from smallest to largest, and the cutoff interest rate will be maintained at a single interest rate. All bidders below this interest rate will be provided with the bond at the same single interest rate.

The interested purchasers can participate in the bond as competitors or non-competitors. Of the issued amounts, 85 and 15 percent will be allocated for bidders, competitors or non-competitors. The secondary market transaction of this bond will be done through the Nepal Stock Exchange Limited, said the NRB.