NRB invites bid for “Development Bond 2087” worth Rs 5 billion; today by 3 pm
Thu, Jul 2, 2015 12:00 AM on Others, Treasury Bill,
ShareSansar, July 2:
Nepal Rastra Bank (NRB) is issuing Development Bond worth Rs 5 billion with a maturity period of 15 years named “Development Bond 2087”.
The sealed bids for the bond need to be filled till Ashad 17(today), 2072 by 3 pm. The sealed bids can be submitted at the NRB’s Public Debt Management Department, Thapathali, and Kathmandu or at the bank’s branches outside the Valley. The bond will be issued on Ashad 18.
Interested Parties can file for bonds worth minimum Rs 50,000 and maximum bonds worth an amount not exceeding the size of total issue and divisible by 50,000 without remainder.
The pay out of principal and interest amount under the bond will start from Ashad 18, 2087.The interest payout will take place in a half-yearly basis and the interest earned will be taxable.
The auction form for the development bond is available at the bank’s website http://www.nrb.org.np.
The interest rate of the bond will be fixed by looking at the interest rates proposed by the participants taking part in the competitive bids. The lowest interest rate bidders will be given priority.
Classes A, B and C BFIs cannot indirectly apply for the bond.
The interested bidder must also submit 2.50 percent of the bid amount on the central bank’s account.
Altogether 80 percent of the bond amount is allotted for direct bid and the remaining 20 percent for indirect bid, and if there is not enough application for the entire amount allotted for indirect bid, the remaining amount will be transferred for direct bid.
The central bank has further informed that if the bond is oversubscribed for the indirect bid then it will be allotted on a proportional basis.
The amount submitted by the non-allottees will be refunded without any interest within seven days after the auction is held.
The secondary trading of the bond will be done through Nepal Stock Exchange (NEPSE).
The bond holder can even take loan against the bond, the central bank has further stated.
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