Government to raise Rs 10 billion through development bonds

Kathmandu: The government is set to raise Rs 10 billion in internal loans by issuing development bonds.

The bonds, named “Development Bond 2032,” will have a maturity period of seven years and will be sold through a bidding process conducted by the Public Debt Management Office.

Banks and financial institutions, companies, firms, other entities, and individuals can submit their bids online until 3 pm on Wednesday, October 8. The principal payment of the bond will be made on 10 October 2032.

According to the Public Debt Management Office, interest payments will be made on a semi-annual basis, and the earned interest will be subject to income tax.

These bonds can also be used as collateral to obtain or provide loans in banks and financial institutions, and they can be traded in the secondary market as well.