Nepal Rastra Bank to Issue Rs 20 Billion One-Year Debenture to Absorb Excess Liquidity

The Nepal Rastra Bank (NRB) is set to issue a Rs 20 billion one-year debenture on Monday to absorb excess liquidity in the country's banking system. The debenture, titled "Nepal Rastra Bank Debenture 2084 Gh," will be available to Class A, B, and C banks and financial institutions through an online auction scheduled to remain open until 3:00 pm. The interest rate on the instrument will be determined through the competitive bidding process. The debenture has a maturity period of one year, with the principal repayment scheduled for July 7, 2027 (Asar 22, 2084 BS), while interest will be paid semi-annually. Eligible institutions can submit bids starting from a minimum of Rs 50 million, with additional bids required to be in multiples of Rs 50 million, up to the total issue size of Rs 20 billion. The issuance is part of NRB's ongoing efforts to manage liquidity in the financial system.