Banking News – Nepal Rastra Bank (NRB) has announced plans to issue NPR 15 billion in one-year debentures through a competitive bidding process as part of its liquidity management operations.

According to the central bank, the debentures will have a maturity period of one year, with the principal to be repaid on July 15, 2027 (Asar 30, 2084).

The interest rate will be determined through the bidding process, while interest payments will be made 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 NPR 50 million. Additional bids must be made in multiples of NPR 50 million, up to the total amount offered.

NRB said bidders may submit bids at either a single interest rate or multiple interest rates.

For allocation, the central bank will rank bids from the lowest to the highest interest rate and allocate the debentures until the offered amount, or the amount determined by the committee, is fully subscribed. A single cut-off interest rate will then be established, and all successful bidders at or below that rate will receive the debentures at the same uniform interest rate.