Central bank to issue foreign employment bond
Central bank is issuing the foreign employment bonds for this fiscal year despite the poor performance of the last one.
It is issuing Foreign Employment Bond 2075-Kha worth Rs 250 million from mid-March, the Nepal Rastra Bank said, adding that the second time bond has been targeted to migrant workers and Non-Resident Nepalis (NRNs) with nine per cent coupon rate. The issue will be open from March 19 to April 8.
Though the past performances of the foreign employment bond has not been encouraging due to low subscription, the government’s public debt manager central bank had issued Foreign Employment Bond 2075-Ka worth Rs 250 million that saw subscription of 10 per cent of the total offering in a month.
Of the total Rs 1 billion bond, the Foreign Employment Bond 2074 — issued last fiscal year — was subscribed of only Rs 42.8 million.
Likewise, in fiscal 2011-12, the central bank had offered bonds worth Rs 1 billion but was able to sell only Rs 8.6 million worth bonds.