Government to Issue Rs. 10 Billion Five-Year Development Bond
The government is issuing a five-year development bond worth Rs. 10 billion to raise internal debt with the interest rate to be determined through competitive bidding.
The Government of Nepal is preparing to raise Rs. 10 billion in internal debt through the issuance of a five-year Development Bond 2026.
According to the Public Debt Management Office (PDMO), the bond will be offered through a competitive bidding process. Banks and financial institutions, non-banking institutions, insurance companies, private sector organizations and Nepali citizens, among others, can participate in the bidding.
The interest rate will be determined based on the bidding process, allowing participating investors to submit their respective bids.
The bond issuance is scheduled for Thursday, while the deadline for submitting bids has been set for Wednesday.
The five-year development bond can also be used as collateral for obtaining loans, providing investors with an additional financing option while holding the government security.
Interest earned from the bond will be paid every six months throughout its tenure.
The issuance is part of the government's efforts to mobilize domestic resources through the internal debt market.