Nepal Rastra Bank Plans Auction of Treasury Bills Worth Rs 15.13 Billion
The Nepal Rastra Bank (NRB) is preparing to conduct an auction of Treasury Bills (T-Bills) valued at more than Rs 15.10 billion scheduled for Monday. The central bank plans to issue T-Bills in two segments: one set worth eight billion rupees with a maturity period of 28 days, and another set worth Rs 7.13 billion with a maturity period of 91 days.
These T-Bills are set to mature on specific dates: the 28-day T-Bills on September 26, 2023, and the 91-day T-Bills on November 28, 2023. It's worth noting that in a prior auction held on August 21, the central bank had successfully auctioned over Rs 6.23 billion in Treasury Bills.
The auction process for these bonds will commence at 3:00 pm the following day, as per the NRB's announcement. The T-Bills will be allocated to the highest bidders among various categories, including A, B, and C class banks, other financial institutions, nonbanks, and financial institutions actively participating in the bidding process.
Treasury Bills are typically short-term promissory notes issued by a government and serve as a primary tool for regulating the money supply and raising funds through open market operations.
To participate in the auction, bidders are required to use the online bidding system software (OBSS). Bidders who do not have an account with the NRB must submit earnest money deposit vouchers to the Monetary Management Department (MMD) by 3:00 pm on August 28. The allocated amount will be settled through the NRB's bank account.
