KATHMANDU: Nepal Rastra Bank (NRB) is issuing ‘Development Bond 2087 D’ worth Rs 20 billion on November 4.
The central bank is in the process of issuing the bond through a bidding process on behalf of the government. Issuing a press statement on Monday, NRB said that the interest rate would be determined through a competitive bidding process.
As pert the statement, banks and financial institutions, insurance companies, organized institutions and even Nepali citizens will be able to purchase the bonds. The central bank informed that bond holders can obtain loans by keeping their bonds as collateral and the interest imbursement would be made biannually.
Interested buyers can participate as competitors or non-competitors where by bonds worth Rs 17 billion has been allocated for competitors and bonds worth Rs three billion for non-competitors. Class A, B and C banks and other financial institutions licensed by the central bank will be able to participate as competitors.
The participants can buy bonds worth a minimum of Rs 50,000 while the maximum that one can purchase should be a figure which is divisible by Rs 50,000.