The Shanghai-based BRICS’ New Development Bank (NDB), which provides funding for infrastructure and sustainable development projects in emerging economies, has issued yuan-denominated bonds, according to China Knowledge Press.
The bonds were issued in two tranches with maturities of three years and five years and coupon rates of between 2.9 percent to 3.5 percent, and 3.2 percent to 3.8 percent respectively.
It’s the bank’s second issuance of yuan-denominated bonds in China after it issued 3 billion yuan worth of green financing bonds in 2016 with a five-year term.
The bank said it aims to continue issuing financial products denominated in the local currencies of its member nations – China, Russia, Brazil, India, and South Africa.
In September, the NDB approved three infrastructure and sustainable development projects in India and Russia with loans aggregating US$825 million.
The NDB was established in 2014 and formally opened for business a year later and provides funding for infrastructure construction and sustainable development projects in the BRICS nations and other emerging economies and developing countries.
The bank’s capital is up to $100 billion and it says all members of the United Nations can join it. However, BRICS nations can never have less than 55 percent of the voting power.
This latest issuance represents the banks second issuance of RMB-denominated bonds in China after it issued RMB 3 billion worth of green financing bonds in 2016 with a five-year term, which also remains as the bank’s only outstanding liability.
The BRICS New Development Bank remains eager to continue issuing financial products denominated in the local currencies of its member nations and has already started the process of issuing bonds in some countries where it now only needs regulatory approval to commence its issuance.
Source RT