The development bond 2087 'E' with a maturity period of 7 years is being issued by Public Debt Management Department, NRB to accumulate internal loan for development works of the government.
According to the NRB, interested BFIs, non-banking financial institutions, insurance companies, organized institutions and Nepali citizens can apply for the development bonds.
The interested parties can participate in both competitive and non-competitive auction. The central bank has allocated 85 percent of issued development bonds for competitive and 15 percent for non-competitive auction.
The bidders can bid for a minimum of 50,000 and maximum of all amounts divisible by 50,000. The bond will be issued on January 27.
The interest rate of the bond will be fixed on the basis of bidding while the interest will be paid semiannually. The bond is tradable in the secondary market and can be kept as collateral in BFIs.
