The government has issued development bonds worth Rs 10 billion.

Kathmandu. The government has issued development bonds worth Rs 10 billion. Issuing a notice today, the Public Debt Management Office has invited bids for the sale of Development Debentures-2089 BS. The debentures with a maturity period of 7 years are worth Rs 10 billion.

The office has invited applications from 10:00 am to 3:00 pm through online bidding until tomorrow. Interested banks and financial institutions, other individuals, firms, institutions or companies can apply through the MC system.

The release will take place on February 28. The interest rate of the debentures will be determined through the bidding process. According to the office, the principal will be paid on February 29, 2089 and the interest will be paid half-yearly. The bonds can be used as collateral and will be tradable in the secondary market.

Out of the total issue, 85 percent i.e. Rs 8.5 billion has been set aside for competitive bidders and 15 percent i.e. Rs 1.5 billion for non-competitive bidders. The minimum purchase limit has been set at Rs 5 lakh.

Bidders except the ‘A’, ‘B’ and ‘C’ class banks and financial institutions licensed by Nepal Rastra Bank (NRB) have received Rs 2.50 per cent of the amount they have bid. 5 percent has to be deposited in Nepal Rastra Bank. According to the Office, the Bond Issuance and Operation Committee shall have the right to accept the tender received in part or in full.

For more information, you can contact the office telephone number 01-4538359. Development bonds are a type of government bonds issued by the government to raise funds for development works. It is usually used by the government to raise money from the domestic market. Nepal Rastra Bank (NRB) issues development bonds on behalf of the government.