On January 31, 2024, the New Development Bank (NDB) issued a RMB 6 billion 5-year Panda bond priced at 2.66% in the China Interbank Bond Market. This transaction has become not only the largest ever 5-year Panda bond issuance, but it also marked the first issuance of a Panda bond this year in the China Interbank Bond Market by a multilateral development bank.
The Bond issuance attracted significant interest from investors, with more than 17 onshore and foreign investors participating. The investors mainly included Central Banks, Official Institutions, Bank Treasuries, and Funds. The oversubscription of the Bond reached 1.23 times, indicating the strong demand and market confidence in NDB’s mission and mandate of mobilising resources for financing infrastructure and sustainable development projects.
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 (SDGs). 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.