NDB's CNY 8.5B Bond Released in China Interbank Market

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by KnowESG
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New Development Bank (NDB) has achieved a successful CNY 8.5 billion bond issuance in the China Interbank Bond Market, a key step in its strategy to expand its presence in capital markets and gather resources for financing sustainable development projects.

This groundbreaking transaction surpassed NDB's previous issuance of a CNY 7 billion Panda bond, generating significant interest from both onshore and offshore investors and allowing NDB to price the bond with a negative issuer premium.

The proceeds from the bond sale will serve as general corporate resources for the bank and will be used to fund infrastructure and sustainable development initiatives that benefit member countries and contribute to the achievement of the Sustainable Development Goals.

It is worth noting that up to 100% of the net proceeds may be remitted offshore in RMB or converted into other currencies, while the remaining funds will be invested as part of NDB's liquid assets.

The transaction garnered strong demand from a diverse range of investors, underscoring their confidence in NDB and its solid reputation in the market. Mr. Leslie Maasdorp, NDB Vice-President and Chief Financial Officer, expressed gratitude to investors for their unwavering trust and confidence in NDB's mission of mobilising resources for top-quality infrastructure and sustainable development projects within the BRICS group and beyond.

NDB's commitment to bolstering its presence in the local capital markets of member countries, including the China Interbank Bond Market, highlights its dedication to supporting China's efforts to strengthen its domestic capital market. This Panda bond issuance serves as a testament to that commitment.

Bank of China Limited served as the Lead Underwriter for the bond, with Industrial and Commercial Bank of China Limited, Agricultural Bank of China Limited, China Construction Bank Corporation, Ping An Bank Co., Ltd., Bank of Ningbo Co., Ltd., CITIC Securities Co., Ltd., and Guotai Junan Securities Co., Ltd. acting as Joint Underwriters, showcasing the collaborative effort behind this successful issuance.

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Source: NDB


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