3.08% interest rate fixed for Rs 5 billion worth ‘Development Bond 2081’ ; oversubscribed 7.5 times

ShareSansar June 12:

Rs. 5 billion “Development Bond 2081”which was issued by Nepal Rastra Bank yesterday with a maturity period of 9 years have received over whelming response from the different BFI’s, thanks to the surplus liquidity in the market.  In total NRB has received bid applications worth Rs 37.36 billion for the same. It was oversubscribed by almost 7.5 times than the actual requirement.

An interest rate of 3.08% has been fixed for the “Development Bond 2081” Which is less than the 3.44% interest rate of the “Development Bond 2079” issued earlier on Jestha 21, 2072
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Altogether 80 percent of the bond amount was allotted for competitive bidding and the remaining 20 percent was to be sold without competition, but there was not enough application in the non competitive bid category and as a result the remaining amount was transferred for direct bid.

Classes A, B and C BFIs were not allowed to apply for the bond in non-competitive bidding.

The bond has been allotted on Jestha 29, 2072 (i.e. today).

The amount submitted by the non-allottees will be refunded without any interest within seven days after the allotment.

The secondary trading of the bond will be done through Nepal Stock Exchange Limited (NEPSE).