NRB invites bids for Development Bonds worth Rs.6 Arba till 7th Jestha; bonds with maturity period of 11 years to pay interest on half yearly basis

Mon, May 20, 2019 1:39 PM on Latest, Others,
NRB invite...

Nepal Rastra Bank (NRB) is issuing development bond worth Rs 6 arba with a maturity period of 11 years named “Development Bond 2087 Kha”.

The bids will be accepted till 7th Jestha, 2076, 3 PM. Interested bidders can apply through Online Bidding System Software. The bonds will be issued on 8th Jestha, 2076.

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. The pay out of principal and interest amount under the bond will start from Jestha 8, 2087. The interest payout will take place on half-yearly basis and the interest earned will be taxable. The interested bidder must also submit 2.50 percent of the bid amount on the central bank’s account.

Altogether 80 percent or Rs 480 crore of the bond amount is allotted for direct bid and the remaining 20 percent or Rs 120 crore 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 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 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.