Chinese yuan Photo:VCG

 

The New Development Bank (NDB), based in Shanghai, has successfully issued 8.5 billion yuan ($1.2 billion) bonds at the China Interbank Bond Market, as part of its strategy to diversify the Bank's presence in capital markets and mobilize resources for financing sustainable development projects.

The NDB established a new benchmark Panda bond transaction within the China Interbank Bond Market which surpassed its previous issuance size of 7 billion yuan worth of the yuan-denominated Panda bonds.

The transaction was met with strong demand from the onshore and offshore markets which enables NDB to price the bond with negative issuer premium.

The net proceeds from the sale of the bond will be used as general corporate resources of the Bank and will be used to finance infrastructure and sustainable development projects that benefit its member countries and contribute to achieving Sustainable Development Goals.

Up to 100 percent of the net proceeds from the sale of the bond may be remitted offshore in RMB or may be converted into other currencies. Pending their use, the net proceeds from the sale of the Bonds will be invested as part of the NDB's liquid assets.

The transaction was characterized by a strong demand from a broad range of investors, which reflects investors' confidence in NDB and its strong reputation in the market.

"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," said Leslie Maasdorp, NDB Vice-President and Chief Financial Officer.

Global Times