The Government of Nepal plans to mobilize Rs 6 billion in domestic borrowing by issuing five-year development bonds. According to the Public Debt Management Office, the instrument titled “Development Bond 2031” will open for competitive bidding tomorrow, with formal issuance scheduled in March. The bonds’ interest rate will be determined using a Dutch auction system. Eligible investors include banks, financial institutions, insurance companies, and individual Nepali citizens. The bonds can also be used as collateral for loans, offering investors a relatively secure investment option at a time of global economic uncertainty and domestic fiscal pressure.
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