Shanghai Based New Development Bank of the BRICS countries is set to issue its first Yuan denominated bonds with plans to release more bonds in local currencies including in Indian Rupee
Delegate: Paolu Nogueira Batista, the banks vice president for economic research, strategy and partnerships and chief risk officer.
Involving nations: Brazil, Russia, India, China and South Africa (BRICS)
Head: Indian banker M V Kamath
Focus: To finance sustainable development projects in the emerging markets and developing countries
- New Development Bank maiden five-year Yuan-denominated bonds
- Will be issued after receiving a rating from international ratings agencies and getting authorities approval.
- More bonds denominated in local currencies of the BRICS countries, including the rupees in India, will be circulated if the banks board and local authorities accepts the project plans
- Stated during the closing ceremony of the Shanghai Forum, an annual meeting of officials, academics, business chiefs and world opinion leaders.
About New Development Bank:
- Initial capital of USD 50 billion
- Total paid-in capital of USD 10 billion
- The founding members of the NDB have brought in capital of USD one billion as initial contribution.
First Batch of Loans on April 2016:
- USD 300 million to Brazil
- USD 81 million to China
- USD 250 million to India
- USD 180 million to South Africa
China-backed Asian Infrastructure Investment Bank (AIIB) tied up with the NDB was expected to contribute to infrastructure development in the Asian region along with IMF, World Bank and Asian Development Bank.
Studies have reported that the Asian region required over USD 1 trillion investment in infrastructure development.