NRB floating develpment bonds worth Rs 8 billion; minimum investment set at Rs 50,000

KATHMANDU, MARCH 7: As part of the government’s initiative to raise domestic credit, Nepal Rastra Bank (NRB) is issuing development bonds worth Rs 8 billion. These bonds have a maturity period of seven years and are open for subscription by banks and financial institutions, non-bank financial institutions, insurance companies, organized institutions, etc. The interest rate for these bonds will be determined through a competitive bidding process.

Interested parties can submit their bids by 3 P.M. on March 14 through the online bidding system of the central bank. The minimum bidding amount is set at Rs 50,000, while the maximum amount that can be bid for is the total issued amount divided by 50,000, without exceeding the total issued amount.

The principal amount of the bonds will be repaid on March 14, 2032, and investors will receive interest payments every six months.

These development bonds will be listed on the Nepal Stock Exchange and can be utilized as collateral in banks and financial institutions to secure loans.