Investor Relations

On June 16, 2020, the New Development Bank (NDB) priced its inaugural benchmark USD 1.5 billion 3-year COVID Response Bond in the international capital markets.

The net proceeds from the Bond issue will be used to finance sustainable development activities in the NDB’s member countries, including emergency assistance loans to the Bank’s member countries. Such emergency loans could be used to finance direct expenses related to the fight against the COVID-19 outbreak or provide support to governmental measures contributing to economic recovery in the member countries of the NDB.

The transaction met exceptional high-quality investor support, with strong participation from central banks and official institutions, which represented 75% of allocations. The investor geographic distribution of the final Bond book was as follows: 56% – Asia, 29% – EMEA, 15% – Americas.

The robust investor demand allowed the NDB to tighten the pricing by 7 basis points compared to the upper bound of initial price thoughts and to achieve the coupon rate of 0.625%.

Issuer New Development Bank (NDB)
Issuer Rating AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA)
Amount USD 1,500,000,000
Settlement date June 23, 2020
Maturity date June 23, 2023
Issue price 99.896%
Issue yield 0.660%
Coupon 0.625% annual
Denomination USD 200k+1k
Listing Euronext Dublin Regulated Market – Irish Stock Exchange
Lead managers Citi, Credit Agricole CIB, Goldman Sachs International, HSBC and J.P. Morgan
Co-managers Bank of China, Barclays, DBS Bank Ltd., Industrial and Commercial Bank of China Limited, Mizuho Securities, Standard Chartered Bank, TD Securities
GEOGRAPHIC DISTRIBUTION
INVESTOR TYPE DISTRIBUTION

On July 06, 2020, the New Development Bank (NDB) successfully placed a CNY 2 billion bond in the China Interbank Bond Market, with a maturity of 5 years and a coupon rate of 3%. By issuing the bond, the Bank completed the quota of its CNY 10 billion Bond Programme registered in January 2019.

The final book size closed in excess of CNY 4 billion, representing an oversubscription of 2.1 times. Notably, the bond was priced 16 bps lower than the valuation of China Development Bank bond on the same day. The bond received extraordinary support from investors, despite high volatility demonstrated in the China Interbank Bond Market, with the China Government Bond jumping quite significantly across the curve.

Issuer Rating AA+ (S&P and Fitch) | AAA (JCR and ACRA) | AAA (CCXI and China Lianhe)
Instrument Senior Unsecured
Listing China Interbank Bond Market
Settlement July 7, 2020
Maturity July 7, 2025
Governing Law PRC Law
Lead Underwriters Industrial and Commercial Bank of China Ltd.
Joint Lead Underwriters Bank of China Ltd., Agricultural Bank of China Ltd., China Construction Bank Ltd.
Maturity 5-year
Amount CNY 2bn
Coupon 3%
GEOGRAPHIC DISTRIBUTION
INVESTOR TYPE DISTRIBUTION

On April 2, 2020, the New Development Bank successfully issued a 3-year CNY Coronavirus Combating Bond in the China Interbank Bond Market. The Bank raised CNY 5 billion, garnered interest from a high-quality diversified investor base both onshore in mainland China, as well as offshore.

The bond was priced at the lower end of the announced pricing range, and the transaction represents the largest-ever CNY-denominated bond as well as the first CNY-denominated Coronavirus Combating Bond issued by multilateral development bank in China.

The final order book was in excess of CNY 15 billion, more than 3 times oversubscribed. The bond distribution was well balanced between onshore and offshore investors. The distribution by geography was as follows: China Mainland – 41%, EMEA – 45%, APAC (excl. China Mainland) – 14%. The bond investor distribution by investor type: Central Banks/Official Institutions – 54%, Banks – 45%, Securities Companies – 1%.

Issuer Rating AA+ (S&P and Fitch) | AAA (JCR and ACRA) | AAA (CCXI and China Lianhe)
Instrument Senior Unsecured
Listing China Interbank Bond Market
Pricing April 1-2nd, 2020
Settlement April 3rd, 2020
Joint Lead Underwriters Industrial and Commercial Bank of China Ltd., Bank of China Ltd., Agricultural Bank of China Ltd., China Construction Bank Ltd
Maturity 3-year
Amount CNY 5bn
Coupon 2.43%
GEOGRAPHIC DISTRIBUTION
INVESTOR TYPE DISTRIBUTION

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. The notes issued under the EMTN Programme will constitute the direct, unconditional obligations of NDB ranking pari passu among themselves and at least pari passu with all other present and future obligations of the Bank.

Programme Size USD 50 billion
Tenor No restriction
Interest Rate Fixed or Floating
Use of proceeds General corporate purposes
The Notes may be referred to as “Green Bonds”, “Social Bonds” or “Sustainability Bonds”
Listing Irish Stock Exchange

The Base Prospectus is also available at Irish Stock Exchange website.

The rating releases:

On November 22, 2019, NDB registered its debut RUB bond Programme in Russia. The Programme was assigned the following identification number: 4-00005-L-001P-02E dated 22.11.2019. The Programme with the maximum size of RUB 100 billion and unlimited validity is listed on Moscow Exchange (MOEX) and governed by the laws of the Russian Federation. Bonds issued under the Programme will constitute unsecured obligations of NDB, ranking equally with all of the Bank’s other unsecured and unsubordinated obligations. Under the Programme, the Bank can issue bonds with the maturity of up to 20 years.

Information shall be disclosed on the website of LLC “Interfax-CRKI”:
https://www.e-disclosure.ru/portal/company.aspx?id=38028

Size RUB 100bn
Validity of the Programme Unlimited
Tenor of the bonds Up to 20 years
Issuer Rating AA+ (S&P and Fitch) | AAA (JCR and ACRA) | AAA(RU) (ACRA)
Instrument Senior Unsecured
Listing Moscow Exchange (MOEX)
Governing Law Laws of the Russian Federation
Coupon Fixed or Floating Rate

In April 2019, NDB registered its debut ZAR bond Programme in South Africa. The Programme with the maximum size of ZAR 10 billion and unlimited validity is listed on Johannesburg Stock Exchange (JSE) and governed by the laws of South Africa. Bonds issued under the Programme will constitute unsecured obligations of NDB, ranking equally with all of the Bank’s other unsecured and unsubordinated obligations. Standard Bank of South Africa acts as a lead-arranger for the Programme and Absa Bank is a co-arranger.

Size ZAR 10bn
Validity of the Programme Unlimited
Issuer Rating AA+ (S&P and Fitch) | AAA (JCR and ACRA)
Instrument Senior Unsecured
Listing Johannesburg Stock Exchange (JSE)
Governing Law Laws of South Africa
Lead-Arranger Standard Bank of South Africa
Co-Arranger Absa Bank
Dealers Absa Bank, Nedbank, FirstRand Bank, Standard Bank of South Africa
JSE Debt Sponsor Standard Bank of South Africa
Coupon Fixed or Floating Rate

In April 2019, NDB established its debut ECP Programme for liquidity management purposes. The Programme with the maximum size of USD 8 billion is established under the Regulation S of the United States Securities Act of 1933, as amended. Commercial papers issued under the Programme will be governed by English law and will constitute direct, unsecured obligations of the NDB, ranking equally with all of the Bank’s other unsecured and unsubordinated obligations. The ECP Programme is rated “A-1+” by S&P Global Ratings and “F1+” by Fitch Ratings.

Size USD 8bn
CP Rating A-1+ and F1+ (S&P and Fitch)
Format Regulation S of the United States Securities Act of 1933, as amended
Governing Law English law
Arranger Citigroup
Dealers Citigroup, Barclays, Goldman Sachs, JPMorgan, BRED Banque Populaire
Issue and Paying Agent Citibank
Form of the Notes Global Notes
Clearing Euroclear and Clearstream

On January 9, 2019, the NDB has successfully registered a CNY 10 billion Bond Programme. The NDB has been granted approval to raise up to CNY 10 billion in the China Interbank Bond Market within 2 years of the Programme registration date.

It is the first CNY Bond Programme established according to the Interim Measures for the Administration of Bond Issuance by Overseas Institutions in the National Interbank Bond Market under the announcement of the People’s Bank of China and Ministry of Finance [2018] No.16 issued on September 25, 2018.

On February 25, 2019, the NDB successfully placed its debut CNY 3 billion bond in the China Interbank Bond Market under the Programme registered on January 9, 2019.

It was the second bond placement of the NDB in China. The bond was placed in two tranches with maturities of 3 years (CNY 2bn) and 5 years (CNY 1bn) and it was priced at the lower end of announced pricing range with coupon rates of 3% and 3.32% respectively.

The bond was more than 3 times oversubscribed with more than 20 orders from domestic state-owned, joint-venture and rural banks, fund companies, securities companies, foreign banks and sovereign funds. The orders were balanced from onshore and offshore investors. For tranche-1 (3-year bond), China Mainland represented 56% of investors, Europe – 21%, Singapore – 8%, Macau SAR – 8% and HK SAR – 7%, while for tranche-2 (5-year bond) China Mainland represented 57% of investors, Europe – 20%, HK SAR – 18% and Japan – 5%.

The NDB became the first international financial institution to issue CNY Bond under the Interim Measures for the Administration of Bonds Issued by Overseas Issuers on the National Interbank Bond Market announced by People’s Bank of China and China’s Ministry of Finance [2018] No. 16 (the Measures) issued on September 25, 2018.

Key parameters of the Bond
Issuer Rating AA+ (S&P and Fitch) | AAA (CCXI and China Lianhe)
Instrument Senior Unsecured
Listing China Interbank Bond Market
Pricing February 25th, 2019
Settlement February 26th, 2019
Governing Law PRC Law
Joint Lead Underwriters Industrial and Commercial Bank of China Ltd., Bank of China Ltd., Agricultural Bank of China Ltd., China Construction Bank Ltd.
Tenor 3-year 5-year
Maturity February 26th, 2022 February 26th, 2024
Amount CNY 2bn CNY 1bn
Coupon 3.00% 3.32%
Geographic distribution of 3-year tranche
Geographic distribution of 5-year tranche

In July 2016, the NDB successfully issued its first bond in China for an amount of CNY 3 billion (USD 450mn) and a tenor of 5 years.

It was the first time that an international financial institution issued a green financial bond in the China Interbank Bond Market and it was also the first time for the NDB to tap the capital market.

The total subscription amount of the NDB’s first bond reached more than CNY 9 billion and the cover ratio reached 3.1. More than 30 investors participated in the bond book building.

The proceeds of the bond are used for infrastructure and sustainable development projects in the NDB member countries.

Ernst & Young Hua Ming LLP has undertaken independent assurance verification of the bond in accordance with the Green Bond Principles published by International Capital Market Association (ICMA) and the Green Bond regulations in China.

During the duration of the bond, the NDB discloses the information on the use of proceeds on a quarterly and annual basis on the http://www.chinamoney.com.cn/chinese/index.html and http://www.shclearing.com/ which is designated by the People’s Bank of China.

Key parameters of the Bond
Issuer Rating AAA (CCXI and China Lianhe)
Instrument Senior Unsecured Green Financial Bond
Listing China Interbank Bond Market
Pricing July 13th, 2016
Settlement July 19th, 2016
Tenor 5-year
Maturity July 19th, 2021
Amount CNY 3bn
Coupon 3.07%
Governing Law PRC Law
Joint Lead Underwriters Bank of China Ltd., Industrial and Commercial Bank of China Ltd., China Construction Bank Ltd., China Development Bank Corporation, HSBC Bank (China) Co., Ltd. and Standard Chartered Bank (China) Ltd.
Selected Projects for the Use of Proceeds from the inaugural Green Bond
Lingang Distributed Solar Power Project in Shanghai, China

  • 100 MW solar rooftop PV and avoided 73,000t CO2/year

Putian Pinghai Bay Offshore Wind Power Project in Fujian, China

  • 700 MW offshore wind power and avoided 869,900t CO2/year
Renewable Energy Projects and Associated Transmission in Brazil

  • 600 MW renewable energy and avoided 1,000,000t CO2/year

Petrobras Environmental Protection Project in Brazil

  • harmful emissions significantly reduced, water and soil contamination avoided
Hydroelectric Power Project in Karelia, Russia

  • 50 MW renewable energy and avoided 48,000t CO2/year
Contact Us

For any investment-related queries, please reach out to funding@ndb.int