On May 29, 2023, New Development Bank (NDB) has successfully issued CNY 8.5 billion bond in the China Interbank Bond Market, as part of its strategy to diversify the Bank’s presence in the capital markets and mobilize resources for financing sustainable development projects. NDB established a new benchmark Panda bond transaction in the China Interbank Bond Market which surpass its previous issuance size of CNY 7 bln Panda bond. The transaction was met with strong demand from the onshore and offshore investor community 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/or contribute to achieving the Sustainable Development Goals. Up to 100% of the net proceeds from the sale of the bond may be remitted offshore in RMB and/or 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.
Bank of China Limited acted as the Lead Underwriter of the bond. Industrial and Commercial Bank of China Limited, Agricultural Bank of China Limited, China Construction Bank Corporation, Ping An Bank Co., Ltd., Bank of Ningbo Co., Ltd., CITIC Securities Co., Ltd., and Guotai Junan Securities Co., Ltd. acted as Joint Underwriters of the bond.