KATHMANDU, Aug 11: The development bond-2088 BS worth Rs 10 billion over an eight year period will be sold through auction on Sunday. On behalf of the government, Nepal Rastra Bank (NRB) is going to raise loans through development bonds.
The development bonds will be open till 3PM on Sunday and will be issued on August 14.
This development bond can be purchased by banks and financial institutions, non-bank financial institutions, insurance companies, organized institutions as well as individuals. According to the NRB, one can acquire loans by pledging this bond.
The interest of this bond will be paid on a half-yearly basis, the principal will be paid on August 15, 2031. The interest tax will be charged on the accumulated interest.
Competitive and non-competitive bidders have been allocated 85 and 15 percent of the issued amount, i.e. Rs 8.50 and Rs 1.50 billion, respectively. NRB said that if the full bids are not received for the amount allocated to the non-competitive bidders, the remaining amount will be sold to the competitive bidders.
The interest rate pledged by the bidder will be arranged in the ascending order and the limit of the interest rate fixed up to the amount to be distributed will be fixed at a single interest rate. All bidders below that interest rate will be provided with the same single interest rate.
If one participates with a minimum of Rs 50,000 and a maximum of the total issued amount divided by 50,000 without increasing the limit of the total issued amount, one will be able to purchase the remaining points. This bond will also be available for trading in the secondary market of Nepal Stock Exchange.