KATHMANDU: The Public Debt Management Office is set to issue a development bond worth Rs 10 billion today (Wednesday), titled “Development Bond 2085.”

The bond, with a maturity period of three years, will be sold through a bidding process. It will be tradable on the secondary market via the Nepal Stock Exchange.

The bond can also be used as collateral to take or give loans. Bidding will take place today from 10 AM to 3 PM.

According to the Office, the interest will be paid semi-annually, and the bond is taxable. The principal amount will be repaid on Shrawan 8, 2085 BS.

Interested buyers can participate either as competitive or non-competitive bidders.

Out of the total, Rs 8.5 billion (85%) has been allocated for competitive bidders and Rs 1.5 billion (15%) for non-competitive bidders.

If the reserved amount for non-competitive bidders is undersubscribed, the remaining portion will be offered to competitive bidders.

In case the non-competitive bids exceed the allocated amount, the bonds will be distributed proportionally among the bidders.

The government has set a target of raising Rs 362 billion in internal debt in the current fiscal year.