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Kathmandu, November 16: The Public Debt Management Office has opened the sale of two types of savings bonds to raise government debt. The office is set to issue the “Citizen Savings Bond–2087” worth Rs 2.5 billion and the “Foreign Employment Savings Bond–2087” worth Rs 500 million.

Applications for purchasing both five-year bonds can be submitted until Mangsir 25, and they will be issued on Mangsir 28. The Citizen Savings Bond will offer an annual interest rate of 6.5 percent, while the Foreign Employment Savings Bond will provide 7.5 percent.

Interest from the bonds will be deposited into the purchaser’s bank account every six months. The minimum purchase amount is Rs 10,000, and the maximum will be limited to the total issuance amount, purchasable in multiples of Rs 10,000 without remainder.

Nepali citizens and non-resident Nepali citizens can purchase the Citizen Savings Bond. Likewise, Nepali citizens working abroad or those who have returned within the past six months, as well as non-resident Nepalis, can purchase the Foreign Employment Savings Bond in their own name or in the name of a family member. Applications can be submitted through the DOMS system and the Investor Portal operated by the Public Debt Management Office.

Although the Citizen Savings Bond has been fully sold in previous years, investor interest in the Foreign Employment Savings Bond has been comparatively low. Due to insufficient awareness among investors, the amount purchased has often been lower than the amount issued, said Prakash Pudasaini, Under-Secretary at the Public Debt Management Office.

“Many people do not know what a savings bond is, why to invest, or how to invest. Although the number of purchasers has gradually increased in recent years, many are still unaware,” he said.

Pudasaini informed that within just the past four days, applications worth Rs 800 million have already been submitted for the Citizen Savings Bond. He said it is expected that this year’s bond may be fully purchased before the deadline. According to him, these bonds will be issued on a ‘first-come, first-served’ basis in stock form.

Noting that the interest rate on these bonds is more attractive than that of bank fixed deposits, Pudasaini said that most citizens are still unaware of the importance and benefits of savings bonds. “Many investors prioritize areas such as real estate, gold and silver, the capital market, and fixed deposits. Compared to these options, government instruments like savings bonds are considered simple, secure, and offer attractive returns,” he said.

According to Under-Secretary Pudasaini, savings bonds are a completely secure investment. The government guarantees the principal amount. In addition, the interest is deposited directly into the purchaser’s bank account every six months. He also mentioned that the bonds can be used as collateral to take loans from banks and financial institutions.

“They can be easily traded in the secondary market, and banks and financial institutions are obligated to buy them whenever the bondholder wants to sell. Because of this, savings bonds can be converted into liquidity immediately. In other words, a bond purchased can be sold whenever the holder wishes,” he said.

People’s News Monitoring Service.