Kathmandu: Nepal Rastra Bank (NRB) has unveiled plans to launch development bonds amounting to 10 billion Nepalese rupees. The six-year development bond, designated as 'Ja' and scheduled to be released on Sunday, serves as a domestic credit initiative by the government.

The scope of purchasers for these bonds is extensive, encompassing banks, financial institutions, non-bank financial entities, insurance companies, organized institutions, and even individual citizens. The interest rate associated with this bond will be established through negotiation, as indicated by NRB.

An additional feature of this bond is its availability as a secured loan option. The bond is structured to provide bi-annual interest payments, with the principal sum repayable on Bhadra 11, 2086 BS.

Interested parties, whether individuals or entities, are eligible to participate in the bond acquisition process as competitive or non-competitive bidders. Notably, commercial banks, development banks, and finance companies authorized by the central Bank will be excluded from participating as competitors. The secondary market trading of this bond will be exclusively facilitated through the Nepal Stock Exchange Limited.