Nepal Rastra Bank is issuing a one-year debenture worth Rs 25 Arba today through an online bidding process.
Nepal Rastra Bank (NRB) is issuing a one-year bond named ‘Nepal Rastra Bank Debenture 2084’ worth Rs 25 Arba today. The Monetary Management Department of central bank issued a notice saying that the bidding will happen online until 3:00 PM today. The interest rate of this debenture will be decided based on the bidding system.
Details on Maturity and Payments
According to the notice, the maturity period of the debenture is one year, and the principal amount will be paid back on Asar 19, 2084. However, the interest on this debenture will be paid semi-annually, which means every six months.
Bidding Limits and Rules
NRB said that buyers can bid for a minimum of Rs 5 Crore. They can also bid for more in multiples of Rs 5 Crore up to the total amount called. This debenture can also be used as collateral to get loans from NRB and other banks and financial institutions.
Only ‘A’, ‘B’, and ‘C’ class banks and financial institutions licensed by central bank are allowed to participate in this bidding. The debentures will be distributed to them based on the interest rates accepted during the bidding.
How it Helps Banks
This approved debenture will be included in the investment portfolio of the banks. Even though it cannot be used to calculate the Cash Reserve Ratio (CRR), banks can count it for Statutory Liquidity Ratio (SLR) and Net Liquid Assets Ratio.
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.
