KATHMANDU, Jan 4: Nepal Rastra Bank (NRB) has issued a one-year bond worth Rs 25 billion to manage excess liquidity in the banking system.
The central bank on Wednesday issued the Nepal Rastra Bank Bond 2083 ‘Ga’ and invited banks to submit bids through an online auction.
Central bank to mop additional 30 billion
Banks interested in investing in the bond must submit their bids by 2 pm. Interest on the investment will be paid every six months, with the interest rate to be determined through the bidding process.
NRB issues bonds as a long-term instrument for liquidity management. Earlier, the central bank had issued Bond ‘Ka’ and Bond ‘Kha’ to absorb Rs 25 billion each for a one-year period.
In the bond issued last Wednesday, banks had submitted applications worth Rs 120 billion, significantly exceeding the offered amount.
