Bhutan’s largest-ever Bond IPO raises Nu 3.3B, deepening Capital Markets and driving Retail participation
In a landmark event for Bhutan’s capital market, the Gelephu Nation Building Bond (GNBB) has raised over Nu 3.3 billion, surpassing its initial target of Nu 2 billion, making it the most subscribed debt instrument in the country’s financial history. The bond, issued to support the development of the Gelephu Mindfulness City (GMC), witnessed participation from 35,403 Bhutanese investors, including 19,377 subscribers through the Royal Securities Exchange of Bhutan’s (RSEB) new online platform.
The GNBB was launched on 2 May 2025, with a subscription window originally set to close on 31 May, but extended by three days due to overwhelming demand. The response has been hailed as a major stride in retail investor engagement, financial inclusion, and public participation in nation-building.
“In anticipation of such issuance, RSEB developed an online subscription portal in advance, incorporating an e-KYC process. This was further enhanced by integrating the National Digital Identity system and a payment gateway to enable seamless subscription,” said an RSEB official.
To ensure accessibility across the country, licensed primary brokers including Bhutan National Bank (BNB), Bank of Bhutan (BoB), Royal Insurance Corporation of Bhutan Ltd. (RICBL), Bhutan Development Bank Ltd. (BDBL), and Digital Kidu (DK) Bank were mobilized to facilitate the offering.
Meanwhile, a Bond Initial Public Offering (IPO) occurs when an entity—government or corporate—offers bonds to the public for the first time to raise capital. In this case, the Gelephu Investment and Development Corporation (GIDC), the project’s implementing agency, offered GNBB to fund Bhutan’s flagship infrastructure project: the Gelephu international airport, which has an initial estimated development cost of USD 500 million.
Unlike equity IPOs, where shares are sold, bond IPOs involve public borrowing where investors lend money to the issuer in exchange for fixed returns over time.
Over-Subscription and the Green Shoe Option
With demand far exceeding the initial Nu 2 billion target, the GIDC chose to absorb the full Nu 3.347 billion raised, a standard practice what is known as a green shoe option—a mechanism typically used in public offerings to accommodate excess demand. This decision ensured that all investor applications were honored in full, avoiding partial allocations and refunds.
The GNBB marks a triple milestone for Bhutan’s capital markets. It is the first Bond exclusively for retail investors. Never before has a public debt instrument been offered solely to Bhutanese individuals, promoting grassroots participation in national development.
Secondly, GNBB saw a record participation with over 35,000 investors, setting a new benchmark for bond subscriptions, eclipsing the previous record of 24,000 .
And finally, it made the first use of RSEB’s online primary market platform: enabled through integration with NDI and commercial banks, more than 18,000 digital investors, many of them first-timers, participated—underscoring digital innovation’s role in enhancing financial inclusion.
In the long run, RSEB officials said that the successful issuance and listing of GNBB not only provides critical funding for a transformative infrastructure project, but also deepens Bhutan’s domestic bond market, improves financial literacy, offers new avenues for investment diversification, and aligns citizens’ wealth with national goals.
According to GIDC, more than a financial instrument, the GNBB became a reflection of the Bhutanese people’s confidence in the country’s future. From all corners of the nation, individuals—many participating for the first time in any capital market instrument—answered the call to invest in a shared national vision.
“Their participation symbolized more than economic engagement; it was an act of trust, solidarity, and service,” said the GIDC.
With an annual coupon rate of 10%, a 10-year term, and tax-exempt interest, the GNBB offered a meaningful way for Bhutanese individuals to contribute directly to long-term national development—financially and symbolically. The bond is now officially listed on the RSEB, enabling future tradability and creating a new benchmark for citizen participation in Bhutan’s capital markets.
According to GMC and GIDC, “With the Gelephu International Airport construction set to commence this year, the GNBB stands as a testament to the power of public participation in shaping Bhutan’s next chapter. The collective spirit demonstrated through this offering reaffirms the unity, trust, and purpose with which Bhutanese citizens are building a mindful, inclusive, and future-ready nation.”
The RSEB listing on Friday signals a new chapter for Bhutan’s financial ecosystem—where public participation, digital accessibility, and national development go hand in hand.
As Bhutan marches toward becoming a more inclusive, transparent, and diversified economy, the GNBB stands as a powerful example of how financial markets can serve the country’s long-term vision and His Majesty’s aspiration for a mindful, compassionate society.
Tashi Namgyal from Thimphu
