NDB Registered RMB 20 Billion Bond Programme in China Interbank Bond Market

The New Development Bank (NDB) has successfully registered its second RMB Bond Programme in the China Interbank Bond Market and received the Letter of Registration (Zhong Shi Xie Zhu, 2020 No. RB5) from the National Association of Financial Market Institutional Investors (NAFMII) on October 28, 2020. The NDB has been granted approval to raise up to RMB 20 billion in the China Interbank Bond Market within two 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.

“Raising local currency finance in BRICS countries, and on-lending in local currency is core to the NDB’s funding strategy. In this regard, we have become a regular bond issuer in the China Interbank Bond Market and have strong confidence in its depth and liquidity. The NDB is pleased to have received strong recognition and support from investors to date,” said Mr. Leslie Maasdorp, NDB VP & CFO. “The NDB places special emphasis on the development impact of its projects, with a commitment to contribute to the achievement of the Sustainable Development Goals. Therefore, we are currently exploring the feasibility of issuing an SDG-linked RMB bond and working with UNDP to test the application of SDG impact standard for bonds under the approved RMB bond Programme in China Interbank Bond Market.”

Background information

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. The NDB received ‘AA+’ long-term issuer credit ratings from S&P and Fitch and ‘AAA’ foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR) and Analytical Credit Rating Agency (ACRA).