The Nepal Rastra Bank is preparing to raise a total of Rs 175 billion by issuing bonds for the eighth time, in which only banks and financial institutions will be allowed to purchase.
What you should know
Nepal Rastra Bank is going to withdraw 20 billion rupees from the market through bonds today. The amount is going to be collected through 'Nepal Rastra Bank Bond-H'. The Rastra Bank has issued a notification for this. According to the notification, banks and financial institutions were asked to bid by 2 pm today.
With this, the Rastra Bank has so far withdrawn Rs 155 billion from the market through 7 bonds. After collecting an additional Rs 20 billion today, the total amount collected through bonds will reach Rs 175 billion. The bond issued today is the eighth.
Earlier, the Rastra Bank has issued bonds worth Rs 25/25 billion five times, Rs 20 billion once and Rs 10 billion once.
Since there is no immediate possibility of a decrease in liquidity in the market, the Rastra Bank has stated that it is withdrawing money for a long period (one year). At this stage, a Rastra Bank source has said that it is preparing to withdraw Rs 200 billion from the market through bonds.
The interest rate of the bond will be determined through bidding and interest will be paid every 6 months. The principal of the bond will be repaid after one year. Only banks and financial institutions (counterparties) of ‘A’, ‘B’ and ‘C’ categories licensed by Nepal Rastra Bank will be allowed to purchase the bond.
Investors will be able to bid on the bond with a minimum of Rs 50 million and a maximum of Rs 50 million divided by the remainder. This bond can also be used to take loans from banks and other banks and financial institutions by pledging it as collateral.
