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BRICS’ NDB Issued USD 1.5 billion Benchmark Bond

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NDB issues USD 1In 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