Kathmandu. Five commercial banks are going to issue bonds worth Rs 9.60 billion. Banks have applied to the Nepal Securities Board for issuance of bonds. Among the banks, Siddhartha Bank, Everest Bank, Sanima Bank, Nepal Credit and Commerce (NCC) Bank and Bank of Kathmandu are about to issue 9.6 million bonds worth Rs 9.60 billion.

The banks have applied to the board after the Nepal Rastra Bank (NRB) made it mandatory to issue at least 25 percent of the paid-up capital. On the basis of the amount, Sanima Bank is about to issue 4 million bonds worth Rs 4 billion.

The interest rate on the 10-year bond will be 10.25 percent per annum. The term of the bond is till 2086 BS. The issuer and sales manager is NIC Asia Capital Limited.

NCC Bank has applied to the Securities and Exchange Board for the issuance of 3 million bonds worth Rs 3 billion. The interest rate on NCC bonds for 10 years is 10.25 percent. Nabil Investment Banking is the manager of the issuance and sale of bonds.

Siddhartha Bank is about to issue bonds worth Rs 3 billion. The interest rate on the 7-year bond is 8.5 percent. The interest rate mentioned in the loan is lower than that of other banks. Due to low interest rates, the possibility of selling less of Siddhartha Bank's bonds has increased. The issuer and sales manager is NMB Capital Limited.

Similarly, Bank of Kathmandu is about to issue Rs 1.60 billion and Everest Bank is going to issue Rs 1 billion. Bank of Kathmandu is about to issue 1.6 million bonds. Bank of Kathmandu is offering 10.25 percent interest on the bonds and Everest Bank will also provide 10.25 percent interest. Everest Bank is about to issue one million bonds worth Rs 1 billion. It is about to be expelled for 7 years.

Banks are issuing bonds to raise investment capital.