First Business News Portal in English from Nepal
KATHMANDU: The Agriculture Development Bank has started selling ‘agricultural bonds’ from today.
Although the bank is preparing to issue a total of Rs 24 billion in bonds, it will sell only Rs 6 billion worth bond in the first phase, as per the bank.
The Nepal Rastra Bank (NRB), through the Monetary Policy for 2020-21, had made an arrangement for banks to issue agricultural bonds to raise flow of credit in the sector.
The Agriculture Development Bank announced selling agricultural bonds amid a function organized to mark the bank’s 54th anniversary today.
The bond issued in the first phase will be for seven years. The banks will receive 4 percent interest rate (coupon rate). The face value of the bond will be Rs. 1,000.
Other 27 commercial banks and the Nepal Infrastructure Bank are also preparing to issue such bonds soon.
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