Nepal Rastra Bank is opening the online bidding for its one-year bond worth Rs 45 Arba today.
Details of the Bond Issue
Nepal Rastra Bank is issuing a one-year bond named “Nepal Rastra Bank Bond 2084 (Kha)” today through an online bidding system. The total value of this bond is Rs 45 Arba. According to a notice from the central bank, interested institutions can submit their bids online until 3:00 PM today.
The interest rate of this bond will be decided through the bidding process itself, and the interest will be paid every six months. The final payment of the principal amount will be done on Ashad 17, 2084. If anyone wants to bid, they have to bid a minimum of Rs 5 Crore, and they can also bid for more in multiples of Rs 5 Crore up to the total calling amount. This bond can also be used as collateral in Rastra Bank or other banks and financial institutions.
Who Can Participate and How?
Only ‘A’, ‘B’, and ‘C’ class banks and financial institutions licensed by Nepal Rastra Bank are allowed to participate in this bidding. The rules say that a single institution can place bids at different interest rates. The central bank will accept interest rates starting from the lowest rate and then going up gradually.
The money for the accepted bid will be cut directly from respective bank’s account on the day of issuance. If there is not enough balance in account, the accepted bid will be canceled. Also, that institution will not be allowed to participate in open market operations and the interest rate corridor bidding for six months.
This investment cannot be counted as Cash Reserve Ratio (CRR). However, banks can count this under Statutory Liquidity Ratio (SLR) and Net Liquid Asset Ratio. The principal amount will not be returned before maturity, and all other rules will be as per the existing laws.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
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