Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) is set to issue “Nepal Rastra Bank Debenture 2084 (2084 BS)” on Friday. Issuing a notice today, the Monetary Management Department of the Nepal Rastra Bank said that the bonds will be issued through an online bidding system till 3:00 pm today. The debentures will be issued on the basis of the interest rate to be determined by the bidders.

According to the notice, the term of the debentures will be for one year and the principal will be paid on July 3, 2084. The interest will be paid half-yearly.

According to the NRB, bidders can bid up to a minimum of five crore rupees and then five crore rupees. The debentures can be used as collateral in Nepal Rastra Bank and other banks and financial institutions.

Only the ‘A’, ‘B’ and ‘C’ class banks (counterparties) licensed by the Nepal Rastra Bank are allowed to participate in the bidding. The debentures will be allotted on the basis of the interest rate approved by the bidders, according to the NRB.

The approved bonds will be included in the investment portfolio. Although it cannot be counted in the Mandatory Cash Reserves (CRR), it can be calculated in terms of Statutory Liquidity Ratio (SLR) and Net Liquid Assets Ratio.