Money
NRB to float bonds for public on Feb 12
The Nepal Rastra Bank (NRB), the central bank, is floating Citizens Saving Bonds worth Rs5 billion soon, as a part of the government’s plan to raise domestic debt of Rs111 billion by the end of this fiscal year to finance various development works.The Nepal Rastra Bank (NRB), the central bank, is floating Citizens Saving Bonds worth Rs5 billion soon, as a part of the government’s plan to raise domestic debt of Rs111 billion by the end of this fiscal year to finance various development works.
These bonds, which will mature after five years, are targeted at general public and promises a fixed return of 8.5 percent per annum. Anyone with at least Rs 10,000 can invest in these bonds.
The sales of these bonds will open on February 12 and continue till March 5, says a notice issued by the NRB. The bonds will be issued to the public on March 10.
These bonds can be bought in the form of promissory notes or stocks.
Bonds bought in the form of promissory notes can be traded by owners anytime based on mutual understanding.
But bonds purchased in the form of stocks can only be traded in presence of NRB officials.
The stock option is designed for those who cannot read or write. This measure protects owners from being duped into buying or selling the securities, NRB officials said.
The NRB is also planning to float development bonds worth Rs67 billion in between mid-March and mid-June.
Eighty per cent of these bonds, with a maturity of five to 15 years, will be sold to banks and financial institutions, and the rest to non-banking institutions and the public.
The returns on these securities will be fixed through auction.