Nepal Rastra Bank to auction Rs. 12 billion worth of debenture today
July 11, 2019 | Investopaper
Nepal Rastra Bank (NRB) is going to auction Development debenture 2081 ‘GA’ today (Ashad 26, 2076). The debenture is worth Rs. 12 billion. It will mature in 2081. So, the maturity period of debenture is 5 years.
The central bank will auction the debenture based on the interest rate. It means that NRB will fix the coupon(interest) rate on the debenture through the auction. The auction will take place at 3 PM today.
Interested applicants should submit the bid on the link https://obss.nrb.org.np/pd. through Online Bidding System Software. The central bank will issue the debenture on Ashad 27, 2076. The interest will be payable semi-annually. The tax is applicable in the earned interest income.
Bank and Financial Institutions (BFIs), insurance companies, Non-BFIs, Organized institutions, and Nepalese citizens are eligible to purchase the development debenture.
NRB will sell 80 percent of the total development debenture 2081 through competitive bidding. Therefore, competitive bidders will participate in Rs. 960 crores of the debenture. Likewise, 20 percent or Rs. 240 crores will be allocated to non-competitive bidders.
The minimum purchase amount is Rs. 50,000.
The debenture is tradable in the Nepal Stock Exchange (NEPSE).
Investors can receive loans by putting the debenture as the collateral.
