Panda Bond NDB Issues RMB 8 Billion for Infrastructure and Sustainable Development
On July 24, 2024, the New Development Bank (NDB) made a significant move in financing infrastructure and sustainable development projects by issuing an RMB 8 billion, 3-year Panda Bond priced at 2.03% in China’s Interbank Bond market. This marks NDB’s second Panda bond issuance in 2024, following the largest-ever 5-year Panda bond issued in January.
Reinforcing Commitment to Financing Infrastructure
The Bond issuance attracted significant interest from investors, with more than 30 onshore and foreign investors participating. Additionally, the investors mainly included Central Banks, Official Institutions, Bank Treasuries, and Funds. Furthermore, the final pricing of the bond settled at the lower end of the pricing guidance, underscoring strong market confidence in NDB’s mission to mobilise resources for financing infrastructure and sustainable development projects.
Robust Demand and Investor Confidence
In addition, the oversubscription of the bond reached 1.7 times, highlighting robust demand and further bolstering investor confidence in NDB’s mandate. Consequently, this successful issuance reinforces NDB’s commitment to facilitating sustainable development through strategic financing initiatives. Moreover, it demonstrates the strong market appeal of NDB’s mission and mandate.
Net Proceeds to Finance Infrastructure and Sustainable Development Projects
The Bank will use the net proceeds from the Panda Bond sale as general corporate resources. These funds will finance infrastructure and sustainable development projects. Consequently, these projects will benefit member countries and help achieve the Sustainable Development Goals (SDGs). This will positively impact the environment and communities.
Bond Summary Terms
The New Development Bank (NDB) is issuing a Panda Bond with impressive ratings from S&P and Fitch. This RMB-denominated debt instrument will raise 8 billion yuan, enhancing the bank’s financing capabilities. The bond’s issuance and settlement dates are set for July 24 and 25, 2024, respectively. With a three-year tenor, the bond will mature on July 25, 2027. Investors can trade this security on the China Interbank Bond Market. Industrial and Commercial Bank of China Limited leads the underwriting process. Additionally, seven prominent financial institutions serve as joint underwriters for this offering.
NDB’s Commitment to Expanding Presence in the China Interbank Bond Market
“We are elated by the extraordinary response to our most recent renminbi-denominated bond offering,” remarked Mr. Zhongxia Jin, Director General of NDB’s Treasury and Portfolio Management Department. “Notably, the substantial oversubscription underscores the allure of our mission to mobilize resources for vital infrastructure projects. Henceforth, we remain steadfast in our commitment to broadening our footprint in the China Interbank Bond Market. Correspondingly, this expansion will bolster our contribution to the region’s economic resilience.”
Strengthening Position as Largest Issuer in the Panda Bond Market
With this successful issuance, the total amount of Panda bonds issued by NDB has reached RMB 55.5 billion, reaffirming NDB’s commitment to financing infrastructure and sustainable development projects. Moreover, this strengthens NDB’s position as the largest issuer in the Panda Bond market.
NDB’s Mission and Mandate
The BRICS nations established the New Development Bank in 2015. Its primary goal is to mobilize resources for infrastructure and sustainable development projects. These initiatives benefit BRICS and other emerging market economies and developing countries. The bank’s first Panda Bond issuance marks a significant step in its financing strategy. Moreover, this Chinese yuan-denominated debt instrument expands the bank’s funding sources. For additional information about the bank’s activities and objectives, interested parties can visit www.ndb.int.