Kathmandu: The Nepal Rastra Bank (NRB) is set to release a development bond valued at Rs 13.10 billion, named 'Development Bond 2088-C.' The central bank will conduct the issuance through a bidding process, allowing participation from banks, financial institutions, insurance companies, incorporated organizations, and ordinary citizens.

Bidding will remain open until 3 pm today, with interest rates for the eight-year bond, payable on October 2, 2031, to be determined through negotiation. The interest payments will occur biannually, with accrued interest subject to applicable taxes, as stated by the central bank.

The interest rates accepted through the bidding process will be arranged in ascending order, and a single cutoff interest rate will be maintained. All successful bidders below this rate will be allocated the bond at the same single interest rate.

Potential purchasers can participate as either competitors or non-competitors, with 85 percent and 15 percent of the issued amounts allocated for bidders, respectively. The Nepal Stock Exchange Limited will facilitate secondary market transactions for this bond, according to the NRB.