Banking News— The Nepal Rastra Bank (NRB) is set to issue bonds worth Rs. 45 billion on Wednesday as part of its long-term liquidity management strategy in the banking system.

According to the central bank, the one-year Nepal Rastra Bank Bond will be issued through a competitive bidding process. The interest rate will be determined based on the bids submitted by participating financial institutions.

The bond will mature on July 2, 2027 (Asar 17, 2084 BS), with interest payments to be made on a semi-annual basis.

The NRB stated that banks and financial institutions may submit bids starting from a minimum of Rs. 50 million, with applications accepted in multiples of Rs. 50 million up to the total issue amount of Rs. 45 billion.

The central bank has also allowed participants to submit bids at multiple interest rates. During the allocation process, bids will be ranked from the lowest to the highest interest rate. A single cut-off interest rate will be determined at the point where the total allocation reaches the announced issue size or the amount decided by the allocation committee. Successful bidders offering the cut-off rate or lower will receive bonds at the same single interest rate.

If the total amount of bids submitted at the cut-off interest rate exceeds the remaining allocation, the bonds will be distributed among those bidders on a pro-rata basis.