Last day to bid for Rs 6 arba Development Bond-2077

ShareSansar, December 24:

Today is the closing day of a seven-year “Development Bond-2077” of Rs 6 arba that Nepal Rastra Bank is issuing through bidding.

Both individual as well as institutional investors could directly or indirectly bid for a minimum of Rs 50 thousand, quoting an interest rate, by 2:00 pm on December 19 through a closed bond application.

The lowest bidders will get the bond.

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 70 percent of the bond amount is allotted for direct bid and the remaining 30 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 bond is due to be issued later today.

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 cut-off interest rate will be determined by the market.

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.

Only on December 13, the central bank had issued Foreign Employment Bond 2075 Kha worth Rs 25 crore for five years period at 9 percent yearly interest for the Nepali citizens working abroad and for the NRNs.

Earlier in December, the central bank had issued National Savings Bond 2075 worth Rs 1 arba to the general public and institutional investors.