NEA to release Rs 3 billion worth power bonds

NEA to release Rs 3 billion worth power bonds
nepalnews.com
Jan 12 07

With the intention of raising domestic capital to construct hydropower projects, the Nepal Electricity Authority (NEA) is planning to release power bonds worth Rs 3 billion.

The power bonds will be offered to the public and institutions and the capital raised thereof will be used in starting construction of 30 MW strong Chameliya project; 14 MW strong Kulekhani III project and also in the undergoing 70 MW strong Middle Marsyangdi project.

The NEA has signed an understanding with Nepal Merchant Banking and Finance Limited to release the power bonds within March.

According to NEA managing director Arjun Kumar Karki, the bonds will have the maturity period of 5 years; and 90 percent of them will be offered to banks, finance companies and insurance companies while 10 percent will be offered to general public.

This will be the first time such power bonds are going to be issued in the country.