In April 2021, the New Development Bank (NDB) of BRICS (Brazil, Russia, India, China, and South Africa) issued a USD 1.5 billion benchmark bond with 5 years of maturity. This is the 3rd USD benchmark bond offering of NDB in the international markets.
About the Bond in brief:
Purpose: NDB will use the total earnings of the Bond for financing sustainable development activities and to provide COVID-19 Emergency Program Loans to the member countries (BRICS).
Investors’ distribution:
- Based on geography: Asia – 36%, EMEA – 60%, Americas – 4%
- Based on the type of investors: Central Banks/Official Institutions – 78%, Banks – 16%, Asset Managers – 4%, Private Banks – 1%, others – 1%.
Summary of the Bond:
| Issuer | NDB |
| Size | USD 1.5 billion |
| Maturity | 5 years |
| Yield | 1.154% annual / 1.151% semi-annual |
| Coupen | 1.125% per annum |
| Lead Managers | Citigroup Global Markets Ltd, HSBC London PLC, Industrial and Commercial Bank of China (Asia) Ltd, J.P. Morgan P, Standard Chartered Bank UK, and TD Securities (Canada) Inc. |
- The book of the bond was oversubscribed with the order book in excess of USD 1.975 billion.
- In 2021, NDB plans to raise ~USD 7 billion equivalents across international and domestic capital markets across different currencies.
Earlier Bond issuances:
- In April 2020, NDB established the Emergency Assistance Facility up to USD 10 billion for crisis-related assistance to its member countries.
- In December 2019, NDB registered USD 50 billion Euro Medium Term Note Programme in the international capital markets.
Recent Related News:
In February 2021, NDB has committed to invest USD 100 Million (~ INR 727 Crore) into the NIIF Fund of Funds (FoF). This is the NDB’s 1st Equity Investment into India & the 1st ever Investment in a FoF.
About New Development Bank (NDB):
- It is a multilateral development bank established by the BRICS countries to mobilize resources for infrastructure and sustainable development projects in BRICS and other developing countries.
- The first President of NDB was from India ( V. Kamath)
Establishment – 2014 (Operational from 2016)
Headquarters -Shanghai, China
President – Marcos Prado Troyjo
