BRICS Development Bank Issues USD450 Million in Yuan Bonds in China
Dou Shicong
/SOURCE : yicai
BRICS Development Bank Issues USD450 Million in Yuan Bonds in China

(Yicai Global) Feb. 27 -- The Shanghai-based BRICS New Development Bank has issued CNY3 billion (about USD450 million) in yuan-denominated bonds in China, the bank announced yesterday. 

This has drawn the attention of more than 20 domestic and foreign financial institutions, state Xinhua news reported.

The bonds issued in two tranches with maturities of 3 years (CNY2 billion) and 5 years (CNY1 billion), and with coupon rates of 2.9 to 3.5 percent and 3.2 to 3.8 percent, respectively, the NDB said.

Founded by the BRICS member countries -- Brazil, Russia, India, China and South Africa -- in July 2015, the NDB provides funding for infrastructure construction and sustainable development projects in these nations, emerging economies and developing countries.

This is the bank's second issuance of yuan-backed bonds in China after it released its first CNY3 billion green financing bond with a five-year term in 2016, which is also the bank's only currently outstanding liability.

The NDB is eager to issue financial products denominated in the local currencies of BRICS member countries.

Its bond work has already begun in some member countries, where it only awaits regulators' approval, said Leslie Maasdorp, the NDB's vice president and chief administrative officer. 

Editor: Ben Armour

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Keywords: New Development Bank , BRICS , Bond