Kathmandu. Nepal Rastra Bank (NRB) is going to sell 'Development Bond 2087 D' worth Rs.20 billion. 

On behalf of the Government of Nepal, Nepal Rastra Bank is going to sell the bonds through bidding process. It is mentioned in the information issued by the central bank that the interest rate will also be determined through the bidding process.

Banks and financial institutions, non-banks, financial institutions, insurance companies, organized organizations and even Nepali citizens will be able to purchase the bonds. The loan can be taken or given as collateral. The notice states that the interest on the bond will be paid semi-annually and interest will be charged on the earned interest.

   Interested buyers can participate as competitors or non-competitors, while 85 and 15 percent have been allocated in the bidding process between competitors and non-competitors respectively. Rs 17 billion has been allocated to competitors and Rs 3 billion to non-competitors.

    There is a minimum limit of Rs. 50,000 and a maximum of Rs. 50,000 without dividing the total withdrawal amount. Class A, B and C banks and financial institutions licensed by the Central Bank will be able to participate as competitors. Provision has been made for interested bidders to bid even at multiple interest rates. The bonds will be traded through Nepal Stock Exchange Limited through secondary market transactions.