On October 25, 2022, the New Development Bank (NDB) successfully priced a 3-year CNY 3 billion bond in the China Interbank Bond Market, completing the NDB’s second CNY 20 billion bond programme. The bond was priced at the tighter end of its price guidance at a yield of 2.53%.

The net proceeds from the sale of the bond will be used onshore as general corporate resources of the Bank for financing infrastructure and sustainable development projects. Pending their use, the net proceeds from the sale of the bond will be invested as part of the Bank’s liquid assets.

The Bank of China Ltd. acted as the lead underwriter and the bookrunner of the issuance. Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd., the Export-Import Bank of China and China Construction Bank acted as joint-lead underwriters of the issuance.

On May 18, 2022, the New Development Bank (NDB) successfully priced a 3-year CNY 7 billion Bond in the China Interbank Bond Market. The transaction is the largest ever Panda Bond issue by a Multilateral Development Bank (MDB). Upon the completion of the issuance, the NDB would have a cumulative total of RMB 30 bln bonds issued under its RMB bond programmes in the China Interbank Bond Market, which makes the Bank the largest and the most prodigious MDB issuer in China.

The net proceeds from the sale of the Bond will form a part of NDB’s general corporate resources onshore and will be used to finance infrastructure and sustainable development activities in the Bank’s member countries.

Despite the volatile backdrop in market conditions, the transaction garnered strong interest from a wide range of high-quality investors. The scale of the transaction sets up a new benchmark for high-quality international issuers, especially MDBs, to expand their funding in the second-largest bond market and the largest local currency market globally.

Bank of China (BOC) acted as the lead underwriter of the Bond. Industrial and Commercial Bank of China, Agriculture Bank of China, China Construction Bank, China Development Bank, Postal Savings Bank of China, and China International Capital Corporation acted as joint-lead underwriters.

On January 27, 2022, the New Development Bank (NDB) successfully issued CNY 3 billion RMB-denominated Bond in the China Interbank Bond Market. With this issuance under the Bank’s second CNY 20 billion Bond Programme in China, the total outstanding amount of CNY bonds issued by the NDB has reached CNY 20 billion, making the Bank one of the largest panda bond issuers in the market.

The net proceeds from the sale of the Bond will be used onshore as general corporate resources of the NDB and to finance infrastructure and sustainable development activities in the Bank’s member states.

The transaction saw strong interest from both onshore and offshore CNY investors and the issue was subscribed 1.5 times. The distribution of investors by region was as follows: China Mainland – 84%, HK SAR and Macau SAR – 8%, Asia excluding greater China – 8%. Investor distribution by type was as follows: Banks – 75%, Security Companies – 18%, CB/OIs – 7%.

Bank of China Ltd. acted as the lead underwriter of the Bond. Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd., DBS Bank (China) Ltd., Deutsche Bank (China) Co., Ltd., CITIC Securities Co., Ltd., China International Capital Corporation Ltd. acted as joint-lead underwriters.

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On December 1, 2021, the New Development Bank (NDB) priced its 3-year USD 500 million SOFR-linked floating rate Pandemic Support and Sustainable Bond. This transaction has become the first floating rate benchmark of the Bank and its fifth USD benchmark bond offering in the international markets.

The net proceeds from the Bond will be used for financing sustainable development activities and providing COVID-19 emergency support loans to the member countries of the Bank. The Board of Directors of the NDB approved nine emergency support loans totaling approx. USD 9 billion in response to the adverse health, social and economic impact of the COVID-19 pandemic. NDB targets to provide a total of USD 10 billion in crisis-related assistance.

The transaction received strong interest from the global investor community following the mandate announcement. The debut SOFR-linked floating rate bond set the spread at SOFR +28bps, with a tightening of 2 bps from initial pricing thoughts. The orderbook was supported by high quality investors. The distribution of investors of the final book was as follows, by region: Asia – 37.9%, Americas – 33.6%, EMEA – 28.5%, and by investor type: CB/OI – 47%, Bank/Private Bank – 38.7%, Fund Manager – 13.7% and Other – 0.6%.

Barclays, Citi, Deutsche Bank, Goldman Sachs International and TD Securities acted as joint lead managers for the transaction.

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On September 16, 2021, the New Development Bank (NDB) successfully issued CNY 2 billion Bond in the China Interbank Bond Market. The Bond was placed in one tranche with maturity of 5 years with the final coupon rate of 3.02%.

The net proceeds from the sale of the Bond will be used for general corporate resources of the NDB and will be used to finance infrastructure and sustainable development projects in the member countries of the Bank, in line with the NDB mandate.

The transaction saw strong interest from both onshore and offshore CNY investors and the issue was subscribed 1.38 times. The distribution of investors by region was as follows: China Mainland – 56%, Singapore – 23%, Europe – 15%, HK SAR – 6%. Investor distribution by type was as follows: Banks – 84%, Security Companies – 16%.

Bank of China Ltd. acted as the lead underwriter of the Bond, while Industrial and Commercial Bank of China Ltd., HSBC Bank (China) Company Ltd., DBS Bank (China) Ltd. and China International Capital Corporation Ltd. acted as joint Lead Underwriters.

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On July 15, 2021, the New Development Bank (NDB) priced its 3-year USD 2.25 billion Pandemic Support and Sustainable Bond. This transaction is the fourth USD benchmark bond offering of the Bank in the international markets.

The net proceeds from the bond will be used for financing sustainable development activities and providing COVID-19 emergency support loans to the member countries of the Bank. In response to the adverse economic impact of COVID-19 pandemic, the Board of Directors of the NDB approved nine emergency support loans totaling approx. USD 9 billion, including four loans for enabling economic recovery in the member countries of the Bank. NDB targets a total of USD 10 billion in crisis-related assistance.

The transaction was met with strong demand from the global investor community. The distribution of investors of the final book was as follows, by geography: Asia – 52.9%, EMEA – 24.9%, Americas – 22.2%, and by investor type: Central Banks/Official Institutions – 78.5%, Banks – 16.5%, Corp. – 2.9%, Funds – 1.8%, Others – 0.3%.

Barclays, Credit Agricole CIB (B&D), Goldman Sachs International, J.P. Morgan and Standard Chartered Bank acted as joint lead managers for the transaction.

Bond Summary Terms

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On April 20, 2021, the New Development Bank (NDB) priced its 5-year USD 1.5 billion benchmark bond. This transaction is the third USD benchmark bond offering of the Bank in the international markets.

The net proceeds of the bond will be used for financing sustainable development activities as well as COVID-19 Emergency Program Loans to the Bank’s member countries. The NDB established the Emergency Assistance Facility in April 2020, to provide up to USD 10 billion in crisis-related assistance to its member countries, including USD 5 billion for financing healthcare and social safety-related expenditures, as well as USD 5 billion for supporting economic recovery efforts.

This transaction was met with significant support from global investor community, the high-quality order book highlights the recognition of NDB’s mandate and its growing stature in the USD market. The distribution of investors of the final book was as follows, by geography: Asia – 36%, EMEA – 60%, Americas – 4% and by investor type: Central Banks/Official Institutions – 78%, Banks – 16%, Asset Managers – 4%, Private Banks – 1%, Others – 1%. The book was oversubscribed with the order book in excess of USD 1.975 billion.

The bond was priced with no new issue premium at MS +25bps. The final price was a tightening of 2bps from initial pricing thoughts and coupon was set at 1.125%. Citigroup Global Markets Limited, HSBC London PLC, Industrial and Commercial Bank of China (Asia) Limited, J.P. Morgan P, Standard Chartered Bank UK, TD Securities (Canada) Inc. acted as lead managers for the transaction.

Bond Summary Terms

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On March 24, 2021, the New Development Bank successfully issued a new 3-year fixed rate CNY 5 billion Bond in the China Interbank Bond Market. The Sustainable Development Goals (SDG) bond was issued under the UNDP Sustainable Development Goals Impact Standards for Bonds (UNDP SDG Standard) as well as the SDG Finance Taxonomy (China) and was issued as a part of the Bank’s CNY 20 billion Bond Programme.

The bond was priced at the tighter end of price guidance at a yield of 3.22%. The transaction garnered notable demand from a geographically diverse investor base. The final order book was in excess of CNY 10 billion, more than 2 times oversubscribed. The geographic distribution of investors was as follows: China Mainland – 51%, APAC (excl. China Mainland) – 27.5%, EMEA – 15%, Americas – 6.5%.

NDB has become the first issuer to use the UNDP SDG Standard as well as the SDG Finance Taxonomy (China) in the debt capital market.

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On October 28, 2020, the NDB has successfully registered its second RMB Bond Programme in the China Interbank Bond Market. The NDB has been granted approval to raise up to RMB 20 billion in the China Interbank Bond Market within 2 years of the Programme registration date. The proceeds of the Programme will be used to finance infrastructure and sustainable development projects in the Bank’s member countries.

Bond offerings under the Programme will be eligible to institutional investors in the China Interbank Bond Market as well as offshore RMB investors through the Bond Connect scheme between Mainland China and Hong Kong.

Agricultural Bank of China, Bank of China, Bank of Communications, CITIC Securities, China Construction Bank, China International Capital Corporation, Credit Agricole Corporate and Investment Bank (China), DBS Bank (China), Deutsche Bank (China), HSBC Bank (China), Industrial and Commercial Bank of China and Standard Chartered Bank (China) have been appointed as the joint lead underwriters of the Programme.

On September 22, 2020, the New Development Bank (NDB) priced its USD 2 billion, 5-year COVID Response Bond in the international capital markets, following its inaugural issuance on June 16, 2020. This is the NDB’s largest-ever USD benchmark bond to date.

The net proceeds of the bond issuance will be used to finance sustainable development activities in the Bank’s member countries, including COVID-related emergency assistance programs. NDB is targeting to provide up to USD 10 billion in crisis-related assistance, including financing healthcare and social safety-related expenditures as well as supporting economic recovery efforts.

The transaction marks NDB’s second foray into the international capital markets following a highly successful inaugural benchmark issuance. The transaction garnered notable demand from a geographically diverse investor base, and substantial participation from central banks and official institutions, which accounted for 66% of final allocations. The geographic distribution of investors of the final bond book was: Asia – 57%, EMEA – 34%, Americas – 9%.

The 5-year benchmark bond was issued at a spread of 37 bps over mid-swaps and pays a fixed annual coupon of 0.625%. Bank of China, Barclays, Citi, Goldman Sachs International and Standard Chartered Bank are acting as lead managers of the bond issuance.

Bond Summary Terms

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On June 16, 2020, the New Development Bank (NDB) priced its inaugural benchmark USD 1.5 billion 3-year COVID Response Bond in the international capital markets.

The net proceeds from the Bond issue will be used to finance sustainable development activities in the NDB’s member countries, including emergency assistance loans to the Bank’s member countries. Such emergency loans could be used to finance direct expenses related to the fight against the COVID-19 outbreak or provide support to governmental measures contributing to economic recovery in the member countries of the NDB.

The transaction met exceptional high-quality investor support, with strong participation from central banks and official institutions, which represented 75% of allocations. The investor geographic distribution of the final Bond book was as follows: 56% – Asia, 29% – EMEA, 15% – Americas.

The robust investor demand allowed the NDB to tighten the pricing by 7 basis points compared to the upper bound of initial price thoughts and to achieve the coupon rate of 0.625%.

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On July 06, 2020, the New Development Bank (NDB) successfully placed a CNY 2 billion bond in the China Interbank Bond Market, with a maturity of 5 years and a coupon rate of 3%. By issuing the bond, the Bank completed the quota of its CNY 10 billion Bond Programme registered in January 2019.

The final book size closed in excess of CNY 4 billion, representing an oversubscription of 2.1 times. Notably, the bond was priced 16 bps lower than the valuation of China Development Bank bond on the same day. The bond received extraordinary support from investors, despite high volatility demonstrated in the China Interbank Bond Market, with the China Government Bond jumping quite significantly across the curve.

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On April 2, 2020, the New Development Bank successfully issued a 3-year CNY Coronavirus Combating Bond in the China Interbank Bond Market. The Bank raised CNY 5 billion, garnered interest from a high-quality diversified investor base both onshore in mainland China, as well as offshore.

The bond was priced at the lower end of the announced pricing range, and the transaction represents the largest-ever CNY-denominated bond as well as the first CNY-denominated Coronavirus Combating Bond issued by multilateral development bank in China.

The final order book was in excess of CNY 15 billion, more than 3 times oversubscribed. The bond distribution was well balanced between onshore and offshore investors. The distribution by geography was as follows: China Mainland – 41%, EMEA – 45%, APAC (excl. China Mainland) – 14%. The bond investor distribution by investor type: Central Banks/Official Institutions – 54%, Banks – 45%, Securities Companies – 1%.

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In December 2019, NDB registered its inaugural USD 50 billion Euro Medium Term Note Programme (EMTN Programme) in the international capital markets. The Programme has been rated “AA+” by Fitch and has been assigned “AA+” long-term and “A-1+” short-term issue ratings by S&P. The notes issued under the EMTN Programme will constitute the direct, unconditional obligations of NDB ranking pari passu among themselves and at least pari passu with all other present and future obligations of the Bank.

• Fitch Ratings: Fitch Assigns New Development Bank’s Euro Medium-Term Notes Programme ‘AA+’ Rating
• S&P: New Development Bank’s Proposed Euro Medium-Term Note Program Rated ‘AA+’

On November 22, 2019, NDB registered its debut RUB bond Programme in Russia. The Programme was assigned the following identification number: 4-00005-L-001P-02E dated 22.11.2019. The Programme with the maximum size of RUB 100 billion and unlimited validity is listed on Moscow Exchange (MOEX) and governed by the laws of the Russian Federation. Bonds issued under the Programme will constitute unsecured obligations of NDB, ranking equally with all of the Bank’s other unsecured and unsubordinated obligations. Under the Programme, the Bank can issue bonds with the maturity of up to 20 years.

Information shall be disclosed on the website of LLC “Interfax-CRKI”:
https://www.e-disclosure.ru/portal/company.aspx?id=38028

In April 2019, NDB registered its debut ZAR bond Programme in South Africa. The Programme with the maximum size of ZAR 10 billion and unlimited validity is listed on Johannesburg Stock Exchange (JSE) and governed by the laws of South Africa. Bonds issued under the Programme will constitute unsecured obligations of NDB, ranking equally with all of the Bank’s other unsecured and unsubordinated obligations. Standard Bank of South Africa acts as a lead-arranger for the Programme and Absa Bank is a co-arranger.

In April 2019, NDB established its debut ECP Programme for liquidity management purposes. The Programme with the maximum size of USD 8 billion is established under the Regulation S of the United States Securities Act of 1933, as amended. Commercial papers issued under the Programme will be governed by English law and will constitute direct, unsecured obligations of the NDB, ranking equally with all of the Bank’s other unsecured and unsubordinated obligations. The ECP Programme is rated “A-1+” by S&P Global Ratings and “F1+” by Fitch Ratings.

On January 9, 2019, the NDB has successfully registered a CNY 10 billion Bond Programme. The NDB has been granted approval to raise up to CNY 10 billion in the China Interbank Bond Market within 2 years of the Programme registration date.

It is the first CNY Bond Programme established according to the Interim Measures for the Administration of Bond Issuance by Overseas Institutions in the National Interbank Bond Market under the announcement of the People’s Bank of China and Ministry of Finance [2018] No.16 issued on September 25, 2018.

On February 25, 2019, the NDB successfully placed its debut CNY 3 billion bond in the China Interbank Bond Market under the Programme registered on January 9, 2019.

It was the second bond placement of the NDB in China. The bond was placed in two tranches with maturities of 3 years (CNY 2bn) and 5 years (CNY 1bn) and it was priced at the lower end of announced pricing range with coupon rates of 3% and 3.32% respectively.

The bond was more than 3 times oversubscribed with more than 20 orders from domestic state-owned, joint-venture and rural banks, fund companies, securities companies, foreign banks and sovereign funds. The orders were balanced from onshore and offshore investors. For tranche-1 (3-year bond), China Mainland represented 56% of investors, Europe – 21%, Singapore – 8%, Macau SAR – 8% and HK SAR – 7%, while for tranche-2 (5-year bond) China Mainland represented 57% of investors, Europe – 20%, HK SAR – 18% and Japan – 5%.

The NDB became the first international financial institution to issue CNY Bond under the Interim Measures for the Administration of Bonds Issued by Overseas Issuers on the National Interbank Bond Market announced by People’s Bank of China and China’s Ministry of Finance [2018] No. 16 (the Measures) issued on September 25, 2018.

Key parameters of the Bond

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In July 2016, the NDB successfully issued its first bond in China for an amount of CNY 3 billion (USD 450mn) and a tenor of 5 years.

It was the first time that an international financial institution issued a green financial bond in the China Interbank Bond Market and it was also the first time for the NDB to tap the capital market.

The total subscription amount of the NDB’s first bond reached more than CNY 9 billion and the cover ratio reached 3.1. More than 30 investors participated in the bond book building.

The proceeds of the bond are used for infrastructure and sustainable development projects in the NDB member countries.

Ernst & Young Hua Ming LLP has undertaken independent assurance verification of the bond in accordance with the Green Bond Principles published by International Capital Market Association (ICMA) and the Green Bond regulations in China.

During the duration of the bond, the NDB discloses the information on the use of proceeds on a quarterly and annual basis on the http://www.chinamoney.com.cn/chinese/index.html and http://www.shclearing.com/ which is designated by the People’s Bank of China.

Key parameters of the Bond

Selected Projects for the Use of Proceeds from the inaugural Green Bond

Lingang Distributed Solar Power Project in Shanghai, China

• 100 MW solar rooftop PV and avoided 73,000t CO2/year

Putian Pinghai Bay Offshore Wind Power Project in Fujian, China

• 700 MW offshore wind power and avoided 869,900t CO2/year

Renewable Energy Projects and Associated Transmission in Brazil

• 600 MW renewable energy and avoided 1,000,000t CO2/year

Petrobras Environmental Protection Project in Brazil

• harmful emissions significantly reduced, water and soil contamination avoided

Hydroelectric Power Project in Karelia, Russia

• 50 MW renewable energy and avoided 48,000t CO2/year