The multilateral lender, formed by BRICS economies, will raise 3 billion yuan towards financing projects that benefit the environment
(From Caixin Online)
By staff reporter Han Yi
The New Development Bank (NDB), a one-year-old, infrastructure-focused lender backed by emerging BRICS economies, said this week it would issue 3 billion yuan, or US$ 447.8 million, worth of bonds in China’s interbank market on July 18.
It is also the first time the multilateral bank, set up by Brazil, Russia, India, China and South Africa, has issued bonds denominated in a currency of a member country.
The bond is a five-year green bond, which raises funds for projects that benefit the environment in ways such as improving energy efficiency and preventing pollution.
The bond yield will be decided on the day of issuance, according to the bank, which is headquartered in Shanghai. Analysts expect it to fall between 2.8 percent and 3.6 percent per annum.
Leslie Maasdorp, NDB’s vice president and chief finance officer, told Caixin the bank plans to sell bonds worth 10 billion yuan over an unspecified period of time. He said they were communicating with Chinese bond regulators to get approval for the sales. Read more