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On September 16, 2021, the New Development Bank (NDB) successfully issued CNY 2 billion Bond in the China Interbank Bond Market. The Bond was placed in one tranche with maturity of 5 years with the final coupon rate of 3.02%.

The net proceeds from the sale of the Bond will be used for general corporate resources of the NDB and will be used to finance infrastructure and sustainable development projects in the member countries of the Bank, in line with the NDB mandate.

The transaction saw strong interest from both onshore and offshore CNY investors and the issue was subscribed 1.38 times. The distribution of investors by region was as follows: China Mainland – 56%, Singapore – 23%, Europe – 15%, HK SAR – 6%. Investor distribution by type was as follows: Banks – 84%, Security Companies – 16%.

Bank of China Ltd. acted as the lead underwriter of the Bond, while Industrial and Commercial Bank of China Ltd., HSBC Bank (China) Company Ltd., DBS Bank (China) Ltd. and China International Capital Corporation Ltd. acted as joint Lead Underwriters.

Maturity
5-year
Amount
CNY 2bn
Coupon
3.02%
Settlement Date
17 September 2021
Issuer rating
AA+ (S&P and Fitch) | AAA (JCR and ACRA)
Instrument
Senior Unsecured
Listing
China Interbank Bond Market
Lead Underwriter
Bank of China Ltd.
Joint Lead Underwriters
Industrial and Commercial Bank of China Ltd., HSBC Bank (China) Company Ltd., DBS Bank (China) Ltd., China International Capital Corporation Ltd.