KATHMANDU: Nepal Rastra Bank is set to issue development bonds worth Rs 10 billion. The central bank is going to issue the six-year development bond 2085 'Ja' today, as a domestic credit to be raised by the government.
Banks and financial institutions (BFIs), non-bank financial institutions, insurance companies, organised institutions and even ordinary citizens can purchase the development bond. The interest rate of this bond will be determined through negotiation, NRB said.
This bond can be secured as a loan. The principal payment of this bond, which pays interest bi-annually, will be on August 27, 2029.
For the purchase of this bond, individuals and organisations can only participate as competitive or non-competitive bidders under the bidding process. Commercial banks, development banks and finance companies licensed by the central Bank will not be allowed to participate as competitors. The secondary market trading of this bond will be done only through Nepal Stock Exchange.
