Nepal Rastra Bank (NRB) is set to issue bonds worth NPR 25 billion under the one-year instrument titled “Nepal Rastra Bank Bond, 2083 Chha.” The bonds will be available for application online starting today, according to the central bank.
However, participation is restricted to banks and financial institutions in categories A, B, and C that hold valid licenses from NRB (counterparties). Interested institutions can apply for a minimum of NPR 5 crore, with additional amounts up to the total issue size available on a pro-rata basis.
The central bank has warned that if a counterparty’s account does not have sufficient funds on the bond issuance date, the approved bid will be canceled, and the institution will face a 2.5% penalty. Furthermore, for six months, the institution will be barred from participating in any open market transactions or interest rate corridor bidding.
Previously, NRB had issued three one-year bonds, and the interest rate will be determined through competitive bidding, with semi-annual interest payments. The principal repayment is scheduled for Poush 28, 2083.
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