KATHMANDU, OCTOBER 1

The Nepal Rastra Bank (NRB) is scheduled to issue a development bond worth Rs 13.10 billion today. The central bank plans to issue the eight-year 'Development Bond 2088-C' through a bidding process.

This bond is open for purchase by banks, financial institutions, non-bank financial institutions, insurance companies, incorporated organizations, and ordinary citizens. Interested parties can participate in the bidding process until 3 pm today.

The interest rates for this bond, to be paid on 2 October 2031, will be determined through negotiation. Interest payments will occur biannually, and the central bank has clarified that interest tax will be levied on the accrued interest.

The interest rates accepted through the bidding process will be arranged in ascending order, and a single cutoff interest rate will be established. All bidders below this interest rate will receive the bond at the same single interest rate.

Potential buyers can participate in the bond issuance as either competitors or non-competitors. Of the total bond issuance, 85 percent will be allocated for competitive bidders, while 15 percent will be reserved for non-competitive bidders.

Furthermore, the secondary market transactions for this bond will be conducted through the Nepal Stock Exchange Limited, as per the NRB's announcement.