Nepal Rastra Bank to Issue Rs 35 Billion Bond, Invites Bids

Dragon Media Correspondent
Kathmandu

Nepal Rastra Bank is set to issue a bond worth Rs 35 billion for monetary management.

The Monetary Management Department of the central bank issued a notice on Tuesday inviting online bids for the bond titled “Rinpatra 2084 ‘Ka’.”

According to the notice, only class ‘A’, ‘B’ and ‘C’ banks and financial institutions licensed by Nepal Rastra Bank will be allowed to participate in the bidding process. The central bank has stated that these institutions will participate as counterparties.

Participating institutions must mention the amount they wish to bid and the proposed interest rate. The interest rate may be quoted up to four decimal places.

According to Nepal Rastra Bank, bids can be submitted for a minimum of Rs 50 million and a maximum of Rs 35 billion. The bid amount must be divisible by Rs 50 million without remainder.

Through the issuance of the bond, the central bank aims to manage liquidity in the banking system and make monetary policy implementation more effective.