Banking News – The Government of Nepal is set to raise Rs. 1 billion by issuing a 15-year Development Bond (Development Bond–2098) through a competitive auction scheduled for Shrawan 20.

According to the notice, banks and financial institutions, individuals, firms, organizations, and companies will be eligible to participate in the auction. The bond can also be used as collateral for obtaining or providing loans.

The interest rate on the bond will be determined through the auction process, while interest payments will be made semi-annually.

The government stated that bids will be ranked from the lowest to the highest proposed interest rate, and a uniform interest rate will be applied based on the highest accepted bid within the allocated amount. All successful bidders quoting that rate or a lower rate will receive the bonds at the same uniform interest rate.

Investors may submit bids starting from a minimum of Rs. 500,000, with additional bids required to be in multiples of Rs. 500,000, without exceeding the total issue size.

The government also clarified that each eligible individual or institution may participate in the auction either as a competitive bidder or a non-competitive bidder, but not in both categories.