Kathmandu- The government has announced the issuance of development bonds worth NRs 3.85 billion. According to a notice released today by the Public Debt Management Office, the purchase period for the nine-year bond, maturing in 2091 B.S., has now opened.
The auction for these bonds will be held today from 10 a.m. to 3 p.m. Banks, financial institutions, and associations interested in participating can take part in the auction.
The office stated that priority in bond allocation will be given to banks and financial organizations offering loans at the lowest interest rates.
Investors in these bonds will receive interest payments on a semi-annual basis. The minimum investment amount is five lakh rupees, and investors can apply in multiples of five lakhs, without exceeding the total amount of bonds available.
The interest rate for the bond will be determined through the auction process.
A development bond is a financial instrument used by the government to raise funds domestically for periods longer than two years, mainly for medium- to long-term financing needs. Currently, the department issues development bonds with maturities of 5, 7, 8, 9, 10, 11, 12, 13, and 15 years. The duration of each bond will be decided according to the government’s requirements.
The main aim of these bonds is to raise medium- and long-term funds needed for the country’s economic development. The bonds will be issued through an auction, where a uniform interest rate will be applied to all successful bidders.