NRB float bonds worth of Rs. 67.5 billion

Kathmandu March 6- Nepal Rastra Bank (NRB) will float bonds worth Rs 67.50 billion in between mid-March and mid-May, as part of the government’s plan to raise funds worth Rs 88 billion from the domestic market to support deficit financing. This year, NRB, which issues bonds on behalf of the government, intends to float Development Bonds, with maturity period of eight, 11, 12, 13 and 15 years, worth Rs 62 billion, shows the domestic debt issuance calendar of the central bank.

A big chunk of these bonds are generally offered as competitive tender and the rest as non-competitive tender. This means a large number of these securities can be subscribed through competitive bidding process and the remaining through non-competitive bidding. The competitive bidding is open for banking institutions, like commercial banks, development banks and finance companies, as well as non-banking institutions, like insurance companies, Employees Provident Fund, Citizen Investment Trust and merchant banks. But the non-competitive bidding is meant only for non-banking institutions.