Investor Relations

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 (BOC) 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. (CICC) acted as joint Lead Underwriters.

Issuer rating AA+ (S&P and Fitch) | AAA (JCR and ACRA
Instrument Senior Unsecured
Listing China Interbank Bond Market
Settlement September 17th, 2021
Lead Underwriter Bank of China (BOC) 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. (CICC)
Maturity 5-year
Amount CNY 2bn
Coupon 3.02%
DISTRIBUTION BY REGION
DISTRIBUTION BY INVESTOR TYPE

On July 15, 2021, the New Development Bank (NDB) priced its 3-year USD 2.25 billion Pandemic Support and Sustainable Bond. This transaction is the fourth USD benchmark bond offering of the Bank in the international markets.

The net proceeds from the bond will be used for financing sustainable development activities and providing COVID-19 emergency support loans to the member countries of the Bank. In response to the adverse economic impact of COVID-19 pandemic, the Board of Directors of the NDB approved nine emergency support loans totaling approx. USD 9 billion, including four loans for enabling economic recovery in the member countries of the Bank. NDB targets a total of USD 10 billion in crisis-related assistance.

The transaction was met with strong demand from the global investor community. The distribution of investors of the final book was as follows, by geography: Asia – 52.9%, EMEA – 24.9%, Americas – 22.2%, and by investor type: Central Banks/Official Institutions – 78.5%, Banks – 16.5%, Corp. – 2.9%, Funds – 1.8%, Others – 0.3%.

Barclays, Credit Agricole CIB (B&D), Goldman Sachs International, J.P. Morgan and Standard Chartered Bank acted as joint lead managers for the transaction.

 
Bond Summary Terms

Issuer New Development Bank (NDB)
Issuer rating AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA)
Format Reg S, Category 2
Notional Amount USD 2,250,000,000
Settlement date 22 July, 2021
Maturity date 22 July, 2024
Issue price 99.861%
Yield 0.672% annual / 0.671% semi-annual
Coupon 0.625%, Fixed, Annual 30/360
Denominations USD 200k+1k
Listing Regulated Market of the Irish Stock Exchange, trading as Euronext Dublin
Lead managers Barclays, Credit Agricole CIB (B&D), Goldman Sachs International, J.P. Morgan and Standard Chartered Bank
DISTRIBUTION BY REGION
DISTRIBUTION BY INVESTOR TYPE

On April 20, 2021, the New Development Bank (NDB) priced its 5-year USD 1.5 billion benchmark bond. This transaction is the third USD benchmark bond offering of the Bank in the international markets.

The net proceeds of the bond will be used for financing sustainable development activities as well as COVID-19 Emergency Program Loans to the Bank’s member countries. The NDB established the Emergency Assistance Facility in April 2020, to provide up to USD 10 billion in crisis-related assistance to its member countries, including USD 5 billion for financing healthcare and social safety-related expenditures, as well as USD 5 billion for supporting economic recovery efforts.

This transaction was met with significant support from global investor community, the high-quality order book highlights the recognition of NDB’s mandate and its growing stature in the USD market. The distribution of investors of the final book was as follows, by geography: Asia – 36%, EMEA – 60%, Americas – 4% and by investor type: Central Banks/Official Institutions – 78%, Banks – 16%, Asset Managers – 4%, Private Banks – 1%, Others – 1%. The book was oversubscribed with the order book in excess of USD 1.975 billion.

The bond was priced with no new issue premium at MS +25bps. The final price was a tightening of 2bps from initial pricing thoughts and coupon was set at 1.125%. Citigroup Global Markets Limited, HSBC London PLC, Industrial and Commercial Bank of China (Asia) Limited, J.P. Morgan P, Standard Chartered Bank UK, TD Securities (Canada) Inc. acted as lead managers for the transaction.

 
Bond Summary Terms

Issuer New Development Bank (NDB)
Issuer rating AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA)
Format Reg S, Category 2
Size USD 1,500,000,000
Settlement date 27 April, 2021
Maturity date 27 April, 2026
Issue price 99.858%
Yield 1.154% annual / 1.151% semi-annual
Coupon 1.125%, Fixed, Annual 30/360
Denominations USD 200k+1k
Listing Regulated Market of the Irish Stock Exchange, trading as Euronext Dublin
Lead managers Citi, HSBC, ICBC, J.P. Morgan, Standard Chartered, TD Securities
DISTRIBUTION BY REGION
DISTRIBUTION BY INVESTOR TYPE

On March 24, 2021, the New Development Bank successfully issued a new 3-year fixed rate CNY 5 billion Bond in the China Interbank Bond Market. The Sustainable Development Goals (SDG) bond was issued under the UNDP Sustainable Development Goals Impact Standards for Bonds (UNDP SDG Standard) as well as the SDG Finance Taxonomy (China) and was issued as a part of the Bank’s CNY 20 billion Bond Programme.

The bond was priced at the tighter end of price guidance at a yield of 3.22%. The transaction garnered notable demand from a geographically diverse investor base. The final order book was in excess of CNY 10 billion, more than 2 times oversubscribed. The geographic distribution of investors was as follows: China Mainland – 51%, APAC (excl. China Mainland) – 27.5%, EMEA – 15%, Americas – 6.5%.

NDB has become the first issuer to use the UNDP SDG Standard as well as the SDG Finance Taxonomy (China) in the debt capital market.

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 March 23-24th, 2021
Settlement March 25th, 2021
Joint Lead Underwriters Bank of China Ltd., Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd., Bank of Communications Co., Ltd., Deutsche Bank (China) Co., Ltd., DBS Bank (China) Ltd., CITIC Securities Co., Ltd.
Maturity 3-year
Amount CNY 5bn
Coupon 3.22%
DISTRIBUTION BY REGION

On October 28, 2020, the NDB has successfully registered its second RMB Bond Programme in the China Interbank Bond Market. The NDB has been granted approval to raise up to RMB 20 billion in the China Interbank Bond Market within 2 years of the Programme registration date. The proceeds of the Programme will be used to finance infrastructure and sustainable development projects in the Bank’s member countries.

Bond offerings under the Programme will be eligible to institutional investors in the China Interbank Bond Market as well as offshore RMB investors through the Bond Connect scheme between Mainland China and Hong Kong.

Agricultural Bank of China, Bank of China, Bank of Communications, CITIC Securities, China Construction Bank, China International Capital Corporation, Credit Agricole Corporate and Investment Bank (China), DBS Bank (China), Deutsche Bank (China), HSBC Bank (China), Industrial and Commercial Bank of China and Standard Chartered Bank (China) have been appointed as the joint lead underwriters of the Programme.

On September 22, 2020, the New Development Bank (NDB) priced its USD 2 billion, 5-year COVID Response Bond in the international capital markets, following its inaugural issuance on June 16, 2020. This is the NDB’s largest-ever USD benchmark bond to date.

The net proceeds of the bond issuance will be used to finance sustainable development activities in the Bank’s member countries, including COVID-related emergency assistance programs. NDB is targeting to provide up to USD 10 billion in crisis-related assistance, including financing healthcare and social safety-related expenditures as well as supporting economic recovery efforts.

The transaction marks NDB’s second foray into the international capital markets following a highly successful inaugural benchmark issuance. The transaction garnered notable demand from a geographically diverse investor base, and substantial participation from central banks and official institutions, which accounted for 66% of final allocations. The geographic distribution of investors of the final bond book was: Asia – 57%, EMEA – 34%, Americas – 9%.

The 5-year benchmark bond was issued at a spread of 37 bps over mid-swaps and pays a fixed annual coupon of 0.625%. Bank of China, Barclays, Citi, Goldman Sachs International and Standard Chartered Bank are acting as lead managers of the bond issuance.

Bond Summary Terms

Issuer New Development Bank (NDB)
Issuer rating AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA)
Format Reg S, Registered form
Size USD 2,000,000,000
Settlement date 29 September, 2020
Maturity date 29 September, 2025
Issue price 99.651%
Issue yield 0.695%
Coupon 0.625%, Fixed, Annual 30/360
Denomination USD 200k+1k
Listing Euronext Dublin Regulated Market – Irish Stock Exchange
Lead managers Bank of China, Barclays, Citi, Goldman Sachs International, Standard Chartered Bank
Co-managers China Construction Bank, Industrial and Commercial Bank of China Limited, HSBC, Nomura, TD Securities, Royal Bank of Canada
DISTRIBUTION BY REGION
DISTRIBUTION BY INVESTOR TYPE

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
DISTRIBUTION BY REGION
DISTRIBUTION BY INVESTOR TYPE

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%
DISTRIBUTION BY REGION
DISTRIBUTION BY INVESTOR TYPE

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%
DISTRIBUTION BY REGION
DISTRIBUTION BY INVESTOR TYPE

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%
DISTRIBUTION BY REGION OF 3-YEAR TRANCHE
DISTRIBUTION BY REGION 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

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