First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) is initiating the issuance of development bonds valued at Rs 13.10 billion today. The central bank has introduced the ‘Development Bond 2088-C,’ featuring an eight-year maturity period.
This bond offering is accessible to a diverse range of investors, encompassing banks, financial institutions, non-bank financial institutions, insurance companies, organized entities, and individual citizens. Interested parties can participate in the bidding process until 3 PM today.
The interest rate for this bond, scheduled for payment on October 2, 2031, will be determined through negotiations. Furthermore, the NRB has specified that interest payments will occur semi-annually, with taxes applicable to the accrued interest.
The interest rates accepted via the bidding process will be organized in ascending order, and the final cutoff interest rate will apply uniformly until the allotted amount is distributed.
Potential bond buyers have the flexibility to engage either competitively or non-competitively. Competitive bidders will secure 85 percent of the total issued amount, while non-competitive bidders will receive 15 percent. In the bidding process, investors can acquire a minimum of 50,000 and a maximum amount without surpassing the total issued limit.
The NRB has also confirmed that secondary market transactions for these bonds will be conducted through the Nepal Stock Exchange Limited.
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