On March 25, 2025, the New Development Bank (NDB) successfully priced a 3-year USD 1.25 billion benchmark bond paying an annual coupon of 4.375%, which will be issued on March 31, 2025, under the Bank’s Euro Medium Term Note Programme.
The bond was met with strong demand from the investor community, with the final order book reaching approximately USD 2 billion.
The transaction attracted 35 investors, with a well-diversified allocation across investor types: Bank Treasuries (67%), Central Banks/Official Institutions/Sovereign Funds (23%), Asset managers and others (10%). The issuance saw a geographically diverse investor base, with 82% of participants from Asia, 16% from EMEA, and 2% from the Americas.
“Our successful issuance of the USD 1.25 billion 3-year benchmark bond reflects the strong confidence of investors in the New Development Bank’s financial stability and mandate,” said Mr. Monale Ratsoma, NDB Vice-President and Chief Financial Officer. “New Development Bank’s funding strategy is designed to ensure that the Bank has the necessary resources to meet our liquidity needs while keeping borrowing costs low. NDB is committed to strengthening its presence in bond markets, issuing in both hard currencies and the local currencies of our member countries. By diversifying our funding sources across various markets and instruments, NDB is well-equipped to support its growing project portfolio.”
Background Information
New Development Bank was established with the purpose of mobilizing 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.
In December 2019, NDB registered its inaugural USD 50 billion Euro Medium Term Note Programme (EMTN Programme) in the international capital markets. The Programme has been rated “AA+” by Fitch and has been assigned “AA+” long-term and “A-1+” short-term issue ratings by S&P.