Nepal Rastra Bank Issues Rs 45 Billion One-Year Debt Note

Kathmandu. Nepal Rastra Bank is issuing a one-year 'Nepal Rastra Bank Debt Note 2084 (B)' worth Rs 45 billion through bidding today. The central bank informed through a notice today that the bidding for the said debt note will be held through the online bidding system until 3 PM today. According to the Rastra Bank, the interest rate of the debt note will be determined by bidding, and the interest will be paid semi-annually. The principal of the debt note will be paid on Ashad 17, 2084. Bidding can be done for a minimum of Rs 5 crore and thereafter in multiples of Rs 5 crore up to the total amount called. This debt note can also be used as collateral in Nepal Rastra Bank and other banks and financial institutions. According to the notice, only 'A', 'B', and 'C' class banks and financial institutions (counterparties) licensed by Nepal Rastra Bank will be able to participate in the bidding. A single institution can bid at different interest rates. The Rastra Bank has stated that the approved interest rate will be determined sequentially from the lowest interest rate. The Rastra Bank has stated that the approved bid amount will be deducted from the accounts of the concerned institutions on the day of issuance. If there is insufficient balance in the account, the approved bid will be canceled, and participation in open market operations and interest rate corridor bidding will be prohibited for six months. The investment made in this debt note will not be counted in the Cash Reserve Ratio (CRR). It can be counted in the Statutory Liquidity Ratio (SLR) and Net Liquid Asset Ratio. The Rastra Bank has stated that the principal will not be repaid before the maturity of the debt note, and other procedures will be in accordance with prevailing laws and regulations.