Government to Issue Development Bonds Worth NPR 10 Billion

The Government of Nepal has announced the issuance of development bonds worth NPR 10 billion. The Ministry of Finance, through its Public Debt Management Office, is set to issue a 9-year development bond named 'Development Bond 2091'.

In a notice released on Tuesday, the office informed that the bidding process for purchasing the bonds will open on January 14, Wednesday. The bond issuance date is set for January 15, 2082, and the interest payment will be made on January 15, 2091. The interest rate will be determined through the bidding process.

The bond’s interest will be paid semi-annually, and it will be subject to income tax as per the regulations.

Banks, financial institutions, individuals, firms, organizations, or companies are eligible to apply for these bonds. Of the total issued amount, 85% (NPR 8.5 billion) will be allocated for competitive bidders, and the remaining 15% (NPR 1.5 billion) will be reserved for non-competitive bidders.

These bonds can be used as collateral for loans from banks and financial institutions.

The secondary market trading of these bonds will take place through the Nepal Stock Exchange (NEPSE) and the DOMS system. Interested buyers are required to submit their bids through the online system of the Public Debt Management Office at https://doms.gov.np/csd/MainTree.do between 10:00 AM and 2:00 PM on Wednesday, January 14.