KATHMANDU: The Nepal Rastra Bank (NRB) is set to issue development bond worth eight billion rupees on Sunday.

The sale of the bond will take place through a bidding model, the central bank said in a notice.

Banks and financial institutions, non-banking financial institutions, insurance companies, incorporated organizations and Nepali citizen will be eligible to purchase the bond.

It can be used as collateral for taking loans. The interest rate will be half-yearly and tax will be imposed on the achieved interest.