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Nepal Rastra Bank (NRB) to issue debentures worth Rs 25 billion with a maturity period of one year 

. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, is set to issue “Nepal Rastra Bank Debenture 2084” (2084) debentures worth Rs 25 billion. Issuing a notice today, the Monetary Management Department of the Nepal Rastra Bank (NRB) said that the debentures will be issued by 3:00 pm today through an online bidding system. The debentures will be issued on the basis of the interest rate to be determined by the bidders.

According to the notice, the debentures will be valid for one year and the principal will be repaid on July 1, 2008.TAG_OPEN_div_14 The interest will be paid half-yearly.

According to the NRB, bids can be made up to a minimum of five crore rupees and then divided by five crore rupees.TAG_OPEN_div_12 The debentures can be used as collateral in Nepal Rastra Bank and other banks and financial institutions.

Only TAG_OPEN_div_10 the ‘A’, ‘B’ and ‘C’ class banks and financial institutions (counterparties) licensed by the Nepal Rastra Bank are allowed to participate in the bidding. The debentures will be allotted on the basis of the interest rate approved by the bidders, according to the NRB.

Approved bonds will be included in the investment portfolio. Although it cannot be counted in the Mandatory Cash Reserves (CRR), it can be calculated in terms of Statutory Liquidity Ratio (SLR) and Net Liquid Assets Ratio.

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