KATHMANDU: Nepal Rastra Bank (NRB) is going to issue development bonds worth Rs 10 billion.

The central bank is going to issue the six-year development bond 2085 ‘Ja’ on Sunday, as a domestic credit to be raised by the government.

Banks and financial institutions, non-bank financial institutions, insurance companies, organized institutions and even ordinary citizens can purchase the development bond.

The interest rate of this bond will be determined through negotiation, the NRB has said. This bond can be secured as a loan.

The principal payment of this bond, which pays interest bi-annually, will be on Bhadra 11, 2086 BS.

For the purchase of this bond, individuals and organizations can only participate as competitive or non-competitive bidders under the bidding process.

Commercial banks, development banks and finance companies licensed by the central Bank will not be allowed to participate as competitors.

The secondary market trading of this bond will be done only through Nepal Stock Exchange Limited.