Hydro co mulls issuing bonds in foreign currency
KATHMANDU, JUL 28 -
A hydropower company has been considering issuing bonds in foreign currency after Nepal Rastra Bank (NRB) allowed banks and financial institutions (BFIs) to buy such instruments through the new monetary policy.
Although the hydropower company refused to confirm its plan, Ace Development Bank has moved to issue bonds worth US$ 60 million on its behalf.
“We have discussed several options including issuing bonds through Ace,” said a senior official of the hydropower company. “But we have not decided whether to issue bonds in foreign exchange.” The official added that the central bank’s decision was a good move and that they were considering it with great interest.
Even though Ace refused to divulge the name of the company planning to issue bonds in foreign exchange, its chief executive officer Siddhant Raj Pandey admitted that the bank was working towards issuing such bonds. In fact, Ace had requested the central bank a few months ago to make the provision of issuing bonds in foreign exchange in Nepal which Nepali BFIs could buy.
“We are preparing to issue bonds within the next two months,” said Pandey. “We will apply to the Securities Board of Nepal for its approval.”
Ace expects the product to be a huge success. “As Nepali BFIs are earning little interest on their investments in treasuries of foreign countries, buying bonds issued in the country will give them higher returns,” said Pandey. Currently, commercial banks have liquid assets worth Rs 54.62 billion in foreign banks as of the first 10 months of the last fiscal year.
Source: Kantipur
A hydropower company has been considering issuing bonds in foreign currency after Nepal Rastra Bank (NRB) allowed banks and financial institutions (BFIs) to buy such instruments through the new monetary policy.
Although the hydropower company refused to confirm its plan, Ace Development Bank has moved to issue bonds worth US$ 60 million on its behalf.
“We have discussed several options including issuing bonds through Ace,” said a senior official of the hydropower company. “But we have not decided whether to issue bonds in foreign exchange.” The official added that the central bank’s decision was a good move and that they were considering it with great interest.
Even though Ace refused to divulge the name of the company planning to issue bonds in foreign exchange, its chief executive officer Siddhant Raj Pandey admitted that the bank was working towards issuing such bonds. In fact, Ace had requested the central bank a few months ago to make the provision of issuing bonds in foreign exchange in Nepal which Nepali BFIs could buy.
“We are preparing to issue bonds within the next two months,” said Pandey. “We will apply to the Securities Board of Nepal for its approval.”
Ace expects the product to be a huge success. “As Nepali BFIs are earning little interest on their investments in treasuries of foreign countries, buying bonds issued in the country will give them higher returns,” said Pandey. Currently, commercial banks have liquid assets worth Rs 54.62 billion in foreign banks as of the first 10 months of the last fiscal year.
Source: Kantipur
