NRB Issuing Development Bond 2084 'Cha' (विकास ऋणपत्र २०८४ च) Via Bidding Process

Nepal Rastra Bank is going to issue Development Bond 2084 'Cha' (विकास ऋणपत्र २०८४ च) to provide an internal loan to the government.

The development bond worth Rs 10 Arba is for a period of six years. Such development bonds are issued through a bidding process, and the allotment starts from bidders with lower interest rates expectation.

Banks and financial institutions, non-banks and financial institutions, insurance companies, organized organizations, and Nepali citizens who are interested in purchasing the bonds can also submit bidding proposals.

The bidding for the development loan will take place on Ashar 08 at 3 p.m. Bids have to be submitted through the online system. The principal amount will be reimbursed on Ashad 09, 2084. Investors receive interest rates half-yearly.

During the bidding, interest rates will be adjusted from low to high. Bids for a minimum of 50,000 and higher amounts divisible by 50,000 should be submitted.

In the case of an individual, one has to go to the National Debt Management Department of NRB and bid through the online bidding system along with the original voucher of "Urgent Money Deposit" and a copy of the citizenship certificate. The rejected amount will be refunded to un-allotted bidders without interest within 7 days of distribution.

The bond can also be bought and sold through the secondary market, and a loan can be obtained against it by pledging in banks and financial institutions.