Banking News – Nepal Rastra Bank (NRB) is set to issue Rs 20 billion worth of one-year bonds through a competitive bidding process.

The central bank announced that it will issue Nepal Rastra Bank Bonds with a maturity period of one year. Interest on the bonds will be paid on a semi-annual basis.

Banks and financial institutions will be eligible to participate in the auction by submitting bids with a minimum investment of Rs 50 million, while higher bids must be made in multiples of Rs 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 central bank stated that bond allocation will be determined by arranging the submitted bids in ascending order of interest rates. A single cut-off interest rate will be established at the point where the total offered amount, or the amount determined by the allocation committee, is reached. Bonds will then be allotted at that single rate to all successful bidders who quoted the cut-off rate or a lower interest rate.