Government to Raise NPR 6 Billion in Domestic Debt Through Development Bonds

Kathmandu. The government is set to raise NPR 6 billion in domestic debt. According to the Public Debt Management Office under the Ministry of Finance, the government is raising NPR 6 billion for a five-year term through a bid process for Development Bonds.

The bidding for the bond, named Development Bond 2087, will take place on Falgun 26, and the issuance will occur on Falgun 27. Banks and financial institutions, non-bank financial institutions, insurance companies, organized institutions, and Nepali citizens can submit bids for the bond.

Loans can be taken or given by pledging the bond as collateral. The interest rate for the bond will be determined through the bidding process, the office stated. Bids will be arranged in ascending order of the quoted interest rates, and the bonds will be issued at that single interest rate to all bidders whose quoted rate is equal to or lower than it.