NDB issues $1.2bn bond on China Interbank Bond Market

The BRICS New Development Bank (NDB) has successfully issued CNY 8.5 billion ($1.2 billion) in bonds on the China Interbank Bond Market as part of a strategy to diversify the bank's presence in capital markets and mobilise resources to finance sustainable development projects.

The net proceeds from the bond sale will be used as the bank's general corporate resources and will be used to finance infrastructure and sustainable development projects that benefit member countries and contribute to the Sustainable Development Goals.

The transaction was characterised by strong demand from a wide range of investors, reflecting investor confidence in the NDB and its strong reputation in the market.

"We are pleased with the successful CNY 8.5 billion bond issue. I would like to thank investors for their continued confidence in the NDB and its mandate to mobilise resources for high-quality infrastructure and sustainable development projects in the BRICS countries and beyond," said Leslie Maasdorp, Vice-President and Chief Financial Officer of the New Development Bank.

"To support our activities, the NDB is committed to increasing its presence in the local capital markets of our member countries through issuing and lending in local currencies, including the China Interbank Bond Market. We remain committed to supporting China's efforts to deepen its domestic capital market and this Panda bond issue contributes to these efforts," he added.

The New Development Bank was established by the BRICS countries on the basis of the intergovernmental agreement signed at the VI BRICS summit in Fortaleza in July 2014. The purpose of the bank is to finance infrastructure and sustainable development projects in the BRICS countries and developing countries. In 2021, the NDB began expanding its membership and welcomed Bangladesh, Egypt, the United Arab Emirates and Uruguay as members, as reported by the NDB's website.

Photo: istockphoto.com