Banking News – Nepal Rastra Bank (NRB) is issuing NPR 20 billion worth of one-year bonds on July 9 (Asar 24) as part of its liquidity management operations.

The central bank said the Nepal Rastra Bank Bond will be issued through a competitive bidding process, with the interest rate determined by auction. Interest on the bonds will be paid on a semi-annual basis.

Banks and financial institutions are eligible to participate in the auction by submitting bids of at least NPR 50 million, with larger bids required to be in multiples of NPR 50 million, up to the total amount offered.

According to the NRB, bids must specify the proposed interest rate, and participants may submit bids at multiple interest rates.

The allocation will be made by ranking bids from the lowest to the highest interest rate until the total issue amount or any allocation amount determined by the committee is reached. The highest accepted rate within that allocation will become the uniform interest rate, and all successful bidders at or below that rate will receive the bonds at the same interest rate.