PRESS RELEASES
New Development Bank issues CNY 7 billion bond in China Interbank Bond Market
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.
“We are pleased to see the robust demand from investors for our RMB 7 bln bond issuance. This transaction is another major milestone for the New Development Bank, as it represents the largest ever Panda Bond issued by a Multilateral Institution,” said Mr. Leslie Maasdorp, NDB Vice President and Chief Financial Officer. “The size of the transaction equals to a USD benchmark size transaction, which can only be delivered by a top-notch issuer in the global capital market. With the successful execution of such a large issuance, NDB again proved itself as a high-quality issuer in the RMB bond market.”
The NDB aims to regularly access the Panda Bond market in 2022 and beyond to meet its liquidity needs to support its development finance mandate.
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.
Bond Summary Terms
| Issuer | New Development Bank (NDB) |
| Issuer rating | AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA) |
| Amount | RMB 7,000,000,000 |
| Book building date | May 18, 2022 |
| Settlement date | May 20, 2022 |
| Maturity date | May 20,2025 |
| Tenor | 3 years |
| Currency | RMB |
| Listing | China Interbank Bond Market |
| Lead Underwriter | Bank of China |
| Joint-lead underwriters | 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 |
Background information
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 market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. In 2021, NDB initiated membership expansion and admitted the United Arab Emirates, Uruguay, Bangladesh and Egypt as its new member countries.
In October 2020, the NDB has successfully registered its second RMB Bond Programme in the China Interbank Bond Market. The NDB was 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.