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On May 18, 2022, the New Development Bank (NDB) successfully priced a 3-year CNY 7 billion Bond in the China Interbank Bond Market. The transaction is the largest ever Panda Bond issue by a Multilateral Development Bank (MDB). Upon the completion of the issuance, the NDB would have a cumulative total of RMB 30 bln bonds issued under its RMB bond programmes in the China Interbank Bond Market, which makes the Bank the largest and the most prodigious MDB issuer in China.

The net proceeds from the sale of the Bond will form a part of NDB’s general corporate resources onshore and will be used to finance infrastructure and sustainable development activities in the Bank’s member countries.

Despite the volatile backdrop in market conditions, the transaction garnered strong interest from a wide range of high-quality investors. The scale of the transaction sets up a new benchmark for high-quality international issuers, especially MDBs, to expand their funding in the second-largest bond market and the largest local currency market globally.

Bank of China (BOC) acted as the lead underwriter of the Bond. Industrial and Commercial Bank of China, Agriculture Bank of China, China Construction Bank, China Development Bank, Postal Savings Bank of China, and China International Capital Corporation acted as joint-lead underwriters.

Maturity
3-year
Amount
CNY 7bn
Coupon
2.7%
Settlement Date
20 May 2022
Issuer rating
AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA)
Instrument
Senior Unsecured
Listing
China Interbank Bond Market
Lead Underwriter
Bank of China
Joint Lead Underwriters
Industrial and Commercial Bank of China, Agriculture Bank of China, China Construction Bank, China Development Bank, Postal Savings Bank of China, China International Capital Corporation