Kathmandu. NRB has made it mandatory for commercial banks to issue bonds of 25 percent of the capital and various commercial banks have applied to the Nepal Securities Board to issue bonds worth Rs 8.60 billion. Due to the policy provision of the National Bank, the commercial banks have reduced the interest rate from last year and increased the number of bonds. However, the interest rate on loans issued by commercial banks is lower than that of development banks.

Banks preparing to issue bonds have reduced interest rates this fiscal year to 8.5 percent. Earlier, commercial banks were selling bonds at an interest rate of up to 10 percent.

Global IME Bank has applied to the Securities and Exchange Board of Nepal (SEBON) to issue bonds worth Rs 3 billion. The bank is about to issue 1 million units of bonds. The bank has applied to Cebon at the rate of Rs 1,000 per unit. The bank has applied to Cebon on September 12 to issue the bond.

Nepal Investment Bank is about to issue 4 million units of bonds worth Rs 4 billion. The bank has applied for the issuance of the bond on September 20.

Similarly, Century Commercial Bank is about to issue 2.2 million units of bonds worth Rs 2.20 billion. Prime Commercial Bank has also applied to the board to issue bonds worth Rs 3.5 billion on November 30 alone. The interest rate on the eight-year bond is 8.75 percent.

The board is studying the application for issuance of bonds issued by Sanima Bank, Credit and Commerce (NCC) Bank and Bank of Kathmandu.

Sanima Bank has applied to the Securities and Exchange Board to issue 4 million units of bonds worth Rs 4 billion. Cebon has studied the documents submitted by the bank for issuing the loan and sent a comment to the bank.

Similarly, Nepal Credit and Commerce (NCC) Bank and Bank of Kathmandu are about to issue bonds worth Rs 3 billion and Rs 1.60 billion respectively.

Similarly, the board has also approved the issuance of 3 million units of bonds worth Rs 3 billion given by Siddhartha Bank. The board has given the approval on September 20.

Kamana Seva Bikas Bank, which is about to issue a loan of Rs 1 billion, has applied to the Securities and Exchange Board of Nepal (SEBON) to sell 10-year bonds at an interest rate of 9.5 percent.

Out of the total Rs 1 billion bonds to be issued by the bank, Rs 400 million will be sold to the public and Rs 600 million will be sold individually.

Similarly, Manjushree Finance has applied to the board to issue 500,000 units of bonds worth Rs 500 million.