NRB calls bid for Development Bond 2080 worth Rs 12 arba
Nepal Rastra Bank (NRB) will be issuing development bond worth Rs 12 arba with a maturity period of 8 years.
Development Bond with a maturity of 8 years named “Development Bond 2080” will be issued through competietive and non competitive method.
The sealed bids for the bond need to be filled till Falgun 30(Sunday), 2072 by 3 pm. The sealed bids can be submitted at the NRB’s Public Debt Management Department, Thapathali, and Kathmandu or at the bank’s branches outside the Valley. The bond will be issued on Chaitra 1, 2072 with maturity on Chaitra 01, 2080.
Interested Parties can file for bonds worth minimum of Rs 50,000 and maximum bonds worth an amount not exceeding the size of total issue and divisible by 50,000 without remainder.
Altogether 80 percent (Rs 9 arba 60 crore) of the bond amount is allotted for direct bid and the remaining 20 percent (Rs 2 arba 40 crore) for the indirect bid. If there is not enough application for the indirect bid, the remaining amount will be transferred for direct bid.
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 auction form for the development bond is available at the bank’s website http://www.nrb.org.np and interested parties can bid through Online Bidding System.
The interest rate of the bond will be fixed by looking at the interest rates proposed by the participants taking part in the competitive bids.Classes A, B and C BFIs cannot participate in indirect bid for the bond.
The interested bidder must also submit 2.50 percent of the bid amount on the central bank’s account.
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.
