Government to Issue Development Bonds Worth NPR 3.85 Billion

The government of Nepal is set to issue development bonds worth NPR 3.85 billion through an auction process on Tuesday. The Public Debt Management Office has scheduled the auction for a 9-year bond from 10 AM to 3 PM.

In this auction, the bank or financial institution offering the lowest interest rate will be prioritized in the allocation of development bonds. The government has consistently used development bonds as a major tool for raising domestic debt.

Previously, on March 13, the bonds were issued at an interest rate of 4.49%. In recent issues, the average interest rate has been around 4.72%.

As the fiscal year comes to a close, the government has resumed the issuance of development bonds, which will play a significant role in its domestic debt management.