August 27: Nepal Rastra Bank (NRB) is preparing to issue development bonds worth Rs 10 billion today (August 27). The central bank will issue the six-year development bond 2085 on Sunday to raise domestic credit for the government.    
Banks and financial institutions, non-banking financial institutions, insurance companies, organized institutions and even ordinary citizens can purchase the development bonds. The interest rate of this bond will be determined through negotiation, the NRB said.    
This bond can be kept as collateral for acquiring loan. The principal payment of this bond, which pays interest bi-annually, will be on August 27, 2029.    
For the purchase of this bond, individuals and organizations can only participate as competitive or non-competitive bidders under the bidding process. Commercial banks, development banks and finance companies licensed by the central bank will not be allowed to participate as competitors. The secondary market trading of this bond will be done only through Nepal Stock Exchange Limited.-- RSS