Nepal | May 26, 2019

NRB to float bonds for overseas migrants, NRNs

Himalayan News Service

KATHMANDU: A new investment avenue will soon open up for overseas migrant workers and non-resident Nepalis (NRNs), as Nepal Rastra Bank (NRB) is preparing to float Foreign Employment Saving Bonds worth Rs 250 million.

NRB will open sales of these bonds, with annual return of nine per cent, on Sunday. They will be available till July 4.

The last time NRB had floated these bonds was in April 2013.NRB is floating Foreign Employment Saving Bonds exclusively for overseas migrant workers, NRNs or workers, who returned home from foreign employment destination less than four months ago. They can purchase these bonds themselves or in the name of their family members, NRB has said in a notice posted on its website. These bonds, which can be bought in lots of at least Rs 5,000, will mature after five years of purchase.

These bonds, which can be used as collateral to obtain loans, can be bought in the form of promissory notes or stocks.

Bonds bought in the form of promissory notes can be traded by owners anytime based on mutual understanding.

But bonds purchased in the form of stocks can only be traded in presence of NRB officials because it is aimed at those who cannot read or write. NRB deems this measure will better protect people from being duped into buying or selling the bonds.

NRB is issuing these securities as a part of the government’s plan to raise domestic debt of Rs 52.75 billion by the end of this fiscal year to finance reconstruction works in the aftermath of the earthquake.

Since May 28, NRB has floated Rs 15 billion worth of development bonds and Rs 2.5 billion worth of Citizens Saving Bonds.

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