Semi-annual repayment of bonds at interest rates subject to income tax, competitive bidding opportunities for Nepali citizens.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
The government has prepared to raise domestic debt of Rs 10 billion by issuing development bonds. Development Bond is a government bond used to raise internal debt of more than two years ie medium and long term. Currently, the development bonds issued by Nepal Rastra Bank range from 3 years to 15 years.
The Public Debt Management Office has informed that the development bond-2085 for 3 years has been prepared to be issued through Bolakbol. Banks and financial institutions, other individuals, firms, institutions or companies interested in purchasing the bonds can participate in the auction on Wednesday 11th of Bhadra from 10 am to 3 pm. Those who wish to purchase
bonds will have to submit an application through the online system. The principal payment of the bond will be on 12th Bhadra 2085, while the interest payment will be made semi-annually. Income tax will be charged on such interest.
According to the Rastra Bank, the interest rates accepted by the bidders will be arranged in the order from the smallest to the largest, and the 'cut off' interest rate will be maintained as a single interest rate up to the amount to be distributed. Bonds will be available to all bidders at that interest rate and below that at the same single interest rate. Banks and financial institutions, non-bank financial institutions, insurance companies, organized organizations and Nepalese citizens can apply for
bonds. Loans can be taken and given as collateral. The interest rate of
bonds will be paid semi-annually and interest tax will be levied on the accrued interest. 85 and 15 percent of the issued amount, i.e. 8.5 billion and 1.5 billion rupees, have been allocated to competitive and non-competitive bond bidders respectively.
Rastra Bank has stated that if the full bid is not received for the amount allocated to non-competitive bidders, the remaining amount will be sold to competitive bidders. If non-competitive bidders receive more bids than the allotted amount, the bonds will be allocated proportionately to the bidders. In
bonds, the minimum amount of 50,000 rupees and the maximum total issued amount must be submitted without exceeding the limit of 50,000. For the purchase of
bonds, individuals and organizations can only participate as competitive or non-competitive bidders under the bidding process. Commercial banks, development banks and finance companies licensed by the National Bank will not be allowed to participate as non-competitive.
