Foreign employment savings bond-2086 sales remain low, civic bond fully subscribed

KATHMANDU: The Public Debt Management Office (PDMO) has reported low sales for the Foreign Employment Savings Bond-2086 (A). Valued at Rs 500 million and issued on  November 27, the bond closed on Sunday with only about 11% sold, amounting to Rs 50.42 million.

In contrast, the Civic Bond-2086 (B), valued at Rs two billion, was fully subscribed. "The sale was 100%," stated Office Spokesperson Mukunda Pokharel. The Civic Bond offers an interest rate of 7.5%, while the Foreign Employment Savings Bond provides a higher rate of 8.5%. Interest payments will be automatically deposited into purchasers' bank accounts every six months.

Despite the attractive interest rates, which surpass those of fixed bank deposits, many citizens remain unaware of these bonds. Investments in real estate, gold and silver, the capital market, and fixed deposits continue to be more popular. A lack of proper publicity, procedural complexities, and limited awareness of the secondary market are said to have discouraged potential investors from embracing these government bonds, which are seen as secure, attractive, and accessible investment options.