Govt. to issue bond to raise Rs. 12 billion

Nepal government is considering to raise 12 billion rupees of internal debt. About 12 billion rupees of domestic debt is going to be mobilized through treasury bills (T-bills) of various maturity periods.

Nepal Rastra Bank’s Monetary Management Department is going to auction the T-bills worth Rs 30.18 billion on Monday. Of this amount, auctioning will take place for the renewal of T-bills worth Rs 18.18 billion while new T-bills worth Rs 12 billion will be auctioned for mobilizing new domestic borrowing. According to the central bank sources, they are going to negotiate for the renewal of T-bills worth three billion rupees for 28 days, 7.10 billion rupees for 91 days, six billion rupees for 182 days and 2.8 billion rupees 

for 364 days. Likewise, five billion rupees through the new 91-day T-bill, three billion through the 182-day T-bills, and four billion through the 364-day T-bill, 12 billion of internal debt is going to be mobilized.

Treasury bills are short-term government bonds meant for raising internal debt with a maturity period of one year or less. T-bills are of four types on the basis of duration, ie, 28 days, 91 days, 182 days and 364 days.