15th November 2024, Kathmandu
The Government of Nepal will issue “Development Bond 2087” on November 13, 2024, to raise NPR 10 billion. This move aims to fund ongoing projects and cover financial obligations. The bond will mature in six years, on November 14, 2030.
NPR 10 Billion Development Bond Issuance
Bond Allocation Structure
The bond issuance will include both competitive and non-competitive bidding:
- 85% for Competitive Bidders: A large portion, 85%, will be offered to competitive bidders, such as banks and financial institutions. These investors will compete by placing bids, which will determine the interest rate.
- 15% for Non-Competitive Bidders: The remaining 15% is for non-competitive bidders, who will get the bond without having to bid. If this category is undersubscribed, the excess will go to competitive bidders.
Who Can Invest?
The bond is open to a wide range of investors:
- Banks and Financial Institutions: They typically invest to secure stable returns.
- Insurance Companies: Bonds help these companies balance their investment portfolios.
- Individual Nepali Citizens: This bond offers a safe and secure investment for the general public.
Key Investment Details
- Minimum Investment: NPR 500,000 is the entry-level amount to invest. This requirement allows both big and small investors to participate.
- Interest Rate: The interest rate will be set through bidding. Payments will be made twice a year, providing regular income to investors.
Debt Strategy and Impact
With this bond, the government’s total internal debt for the current fiscal year will reach NPR 144 billion. This includes:
- NPR 89 billion from development bonds issued so far.
- NPR 45 billion was raised through treasury bills.
The government is using these funds to support essential projects and manage public debt.
Why Invest?
Investing in this bond has many benefits:
- Stable Returns: Interest payments are made twice a year, ensuring a steady income.
- High Security: Government bonds are among the safest investments.
- National Development: Your investment helps drive the country’s progress.
How to Invest
Investors should prepare for the bidding process and stay updated on the interest rate. This bond is a solid opportunity for those looking to invest securely while supporting Nepal’s development. Stay tuned for more details as November 13, 2024, approaches.
For more: NPR 10 Billion Development Bond Issuance
