Foreign Employment Savings Bond Records Only 11% Sales

The Foreign Employment Savings Bond-2086 (A), issued by the Public Debt Management Office, witnessed low sales, with only 11% of the targeted amount sold by its closing date.

The bond, worth Rs 500 million and offered on November 27, closed on Sunday, managing sales of just Rs 50.42 million, the Office reported.

In contrast, the Civic Bond-2086 (B), worth Rs 2 billion, achieved a 100% subscription rate, according to Office Spokesperson Mukunda Pokharel. The Civic Bond offers an interest rate of 7.5%, while the Foreign Employment Savings Bond provides a higher rate of 8.5%, with interest credited to purchasers’ bank accounts every six months.

Despite offering rates that surpass those of fixed bank deposits, the Foreign Employment Savings Bond struggled to attract investors. Experts attribute the low sales to inadequate awareness, procedural complexities, and limited promotion of the bond’s benefits.

Investment preferences among Nepalese remain tilted towards real estate, gold and silver, the capital market, and fixed deposits, which are considered more familiar and straightforward options.

Government bonds like these are seen as secure and lucrative investment opportunities, but the lack of a well-developed secondary market and insufficient publicity have hindered their popularity.