First Business News Portal in English from Nepal
KATHMANDU: Nepal Infrastructure Bank Limited (Nifra) is issuing bond equivalent to US$20-30 million at the international market within the current fiscal year 2020-21.
If this happens, this will be the first financial instruments to be listed at the international stock exchange from Nepal.
As per the bank, it has made all the initial preparations for the international issuance and the Nepal Rastra Bank has already approved the move aimed at raising the fund at the global level.
Nifra initially intended to raise US$ 50 million to 150 million from the international market. However, the absence of credit rating of the bonds as well as the country created hesitation on the part of the bank, said Ram Krishna Khatiwada, Chief Executive Officer of Nifra.
He said that the bank is yet to create its identity at the international markets therefore the company wanted to test it with a pilot programme of issuing bonds of small amount which would be listed at the London Stock Exchange.
According to the estimates of the National Planning Commission and World Bank, Nepal needs to invest 10–15 per cent of its Gross Domestic Product to infrastructure development to become a middle income country by 2030. It means the country is in need of about 10 billion dollars for infrastructure every year.
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