Power bonds to be floated

Power bonds to be floated
Nepalnews.com, 11-Feb-08

The Nepal Electricity Authority (NEA) is preparing to float power bonds worth Rs 1.5 billion to raise domestic capital for investment in hydropower projects.

The bonds will be offered from Thursday and the money raised will be used in funding Chameliya (30 MW), Kulekhani III (14 MW) and under-construction Middle Marsyangdi projects (70 MW). The former two projects are being constructed with NEA’s internal resources alone.

According to NEA, 1.5 million bonds worth Rs 1000 each will be offered for the public. In second phase, the NEA plans to issue additional bonds worth Rs 1.5 billion.

Of the total bonds, 150,000 will be sold to general public and the remaining 13,50,000 will be sold to institutions and individuals.

The maturity period of these bonds will be five years and the interest rate has been fixed at seven. Interest will be paid every six months.

Meanwhile, Minister for Water Resources Gyanendra Bahadur Karki has formed a panel to study and recommend ways to overcome load-shedding. The panel is headed by Deep Kumar Upadhyaya, general manager of Customers Services Department at NEA. It includes representatives from private sector, as well.