(Yicai Global) May 30 -- The New Development Bank, the multilateral lender set up by the BRICS nations, has issued CNY8.5 billion (USD1.2 billion) of three-year panda bonds in China’s interbank bond market, surpassing the previous record of CNY7 billion. 

The sale’s net proceeds, which may be remitted offshore in Chinese yuan or converted into other currencies, will be used for general corporate purposes at the NDB and to finance infrastructure and sustainable development projects that benefit member countries and contribute to achieving the Sustainable Development Goals, the bank said in a statement late yesterday.

Panda bonds are yuan-dominated notes sold by non-Chinese issuers in the China mainland market.

“In order to support our operations, the NDB seeks to increase its presence in local capital markets of our member countries by issuing and lending in local currencies, including the China Interbank Bond Market,” Vice President and Chief Financial Officer Leslie Maasdorp said.

"We remain strongly committed to supporting China's efforts aimed at deepening its domestic capital market, and this panda bond issuance contributes to this effort,” he added.

Founded in 2015, the Shanghai-based NDB was originally called the BRICS Development Bank, or BRICS Bank, after its founders -- Brazil, Russia, India, China, and South Africa. It aims to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development.

Bank of China was the lead underwriter of the NDB’s panda bonds sale. Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, and four other Chinese financial institutions were the joint underwriters.

The sale attracted strong demand from a broad range of investors, reflecting their confidence in the NDB and its strong market reputation.

“I would like to express my gratitude to investors for their continued trust and confidence in the NDB and in its mandate of mobilizing resources for high-quality infrastructure and sustainable development projects in BRICS and beyond,” Maasdorp said.

The NDB's eighth annual meeting is being held in Shanghai today and tomorrow. It will focus on global development issues and perspectives, and how the NDB can contribute to shaping a new era of development in BRICS and other emerging economies and developing countries.

Editor: Futura Costaglione