KATHMANDU: The Public Debt Management Office (PDMO) has opened subscriptions for two types of savings bonds totaling Rs 3 billion as part of the government’s plan to raise domestic funds.
The bonds include the Citizen Savings Bond 2087, valued at Rs 2.5 billion, and the Foreign Employment Savings Bond 2087, worth Rs 500 million. Both bonds have a maturity period of five years, and applications will be accepted until December 11.
The Citizen Savings Bond offers an annual interest rate of 6.5 percent, while the Foreign Employment Savings Bond carries a 7.5 percent rate. Interest will be credited to investors’ bank accounts semi-annually.
Investors can buy a minimum of Rs 10,000 in bonds, with the maximum limit set by dividing the total issuance amount by Rs 10,000. Nepali citizens and non-resident Nepalis (NRNs) are eligible for the Citizen Savings Bond.
The Foreign Employment Savings Bond is open to Nepali citizens and NRNs currently working abroad or who returned from foreign employment within the past six months. Applications can be submitted via the PDMO’s DOMS system and investor portal.
According to PDMO Under Secretary Prakash Pudasaini, subscriptions worth Rs 800 million were received for the Citizen Savings Bond in the first four days. Bonds will be allotted on a first-come, first-served basis.
Pudasaini also noted that savings bonds are highly liquid, as banks and financial institutions must buy them in the secondary market, allowing holders to sell the bonds anytime. Additionally, the bonds can be used as collateral to secure loans from banks and financial institutions.
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