KATHMANDU: The Public Debt Management Office (PDMO) is set to auction ‘Development Bonds–2085’ worth Rs 10 billion today. The three-year bond will be sold through a bidding process and can be traded on the secondary market via the Nepal Stock Exchange.
These bonds, which can be used as collateral for borrowing or lending, will be auctioned between 10 AM and 3 PM. Interest payments will be made semi-annually, and the income earned will be subject to income tax. The bond will mature on July 23, 2028, according to the office.
Buyers can participate as either competitive or non-competitive bidders. Of the total amount, Rs 8.5 billion (85%) has been allocated for competitive bidding and Rs 1.5 billion (15%) for non-competitive bidding.
If non-competitive bids fall short of the allocated amount, the remainder will be sold to competitive bidders. If bids exceed the non-competitive allocation, the bonds will be distributed proportionally among bidders.
The government has set a target of raising Rs 362 billion in internal debt for the current fiscal year.
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