Kathmandu, April 3
The Monetary Management Department of the Nepal Rastra Bank (NRB) has announced the auction of development bonds worth Rs 10 billion with a maturity period of six years.
Banks and financial institutions, non-banking financial institutions, insurance companies, organisations and Nepali citizens can take part in the online auction to be held on Tuesday till 3:00pm.
According to the NRB, the cut-off interest rate determined after categorising the interest rates bid at the auction from highest to lowest bidder will be maintained as the final interest rate. Bidders who bid below the maintained interest rate will also be provided the bonds at the same single rate. The interest should be paid semi-annually and interest tax will be charged on the accrued interest.
The buyers can purchase bonds of minimum Rs 50,000. Eight-five per cent of the bonds worth Rs 8.5 billion will be available for purchase through competitive bidding, while 15 per cent of the bonds worth Rs 1.05 billion will be available in non-competitive bidding.
It is mentioned in the notice that the principal payment of the bond will be on April 5, 2029.
A version of this article appears in the print on April 3, 2023, of The Himalayan Times.
