Kathmandu, February 6
The Monetary Management Department of the Nepal Rastra Bank (NRB) has announced the auction on Tuesday of development bonds worth seven billion rupees with a maturity period of five 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 interest rate of the bond issued will be determined after categorising the highest to lowest interest rate bids made at the auction after which the cut-off interest of the bonds to be distributed will be maintained as the final interest rate.
Participants who bid the final or lower than the determined interest rate will be provided with the bonds at the same interest 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 while a maximum of the amount equivalent to the whole number obtained when bonds, not exceeding the total size, are divided by 50,000.
Eight-five per cent of the bonds worth Rs 5.95 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 February 7, 2028.
A version of this article appears in the print on February 7, 2023, of The Himalayan Times.
