Nepal Rastra Bank is to purchase government treasury bills of Rs 20 billion directly.
According to the central bank’s monetary management department, the bidding for the purchase of bills will be held till 2 pm today. NRB will buy it on Friday after the bidding is over.
According to the Nation Bank, the counterparty wanted to sell the Government of Nepal’s Treasury Bills Series no. And the quantity should be mentioned. The counterparty will have to bid on the number of treasury bills it wants to sell.
The counterparty will be able to bid up to the amount called for purchase at the rate of Rs. 10 million or above. But for a series of treasury bills, only one bid will be required.
When distributing the amount of direct purchase bidding, the annual return rate as per the bid will be calculated and the highest return rate will be given to the bidding counterparty in order of priority and the amount will be distributed gradually. Provided that if the amount of bids with the same annual return rate exceeds the total issued amount, the bid amount at that rate will be distributed proportionately.
The counterparty involved in the bidding will have to file the original copy of the bidding treasury bills for sale in this bank by 2:15 pm on Thursday. The counterparty will be charged 2.50% of the bid price for the next 6 months with an open market and interest rate for the next 6 months. Participation in any bidding related to the corridor may be prohibited.
