NDB will contribute to the development of financial markets in its member states and raise funds not only in hard currencies but also in local currencies.
In July 2016, the NDB successfully issued the first onshore bond in China for an amount of RMB 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 Bank’s first bond reached more than RMB 9 billion and the cover ratio reached 3.1. More than 30 investors participated in the bond book building.
Key parameters of the Bond
|Issuer||The New Development Bank (NDB)|
|Issue Type||Senior Unsecured Green Financial Bond|
|Issue Format||Public Offering|
|Issue Ratings||AAA (China Domestic Rating)|
|Amount||RMB 3 bn|
|Pricing Date||18 July 2016|
|Settlement Date||19 July 2016 (T+1)|
|Maturity Date||19 July 2021|
|Custodian||China Central Depository & Clearing Co, Ltd.|
|Denomination / Subscription||RMB100; RMB5 million / 1 million|
|Governing Law||PRC Law|
|Joint Lead Underwriters||Standard Chartered Bank (China), BOC, ICBC, CCB, CDB and HSBC (China)|
The proceeds of the bond will be used for infrastructure and sustainable development projects in our member states and the NDB will follow the green guidelines set by the People’s Bank of China (PBOC) in December 2015.
The detailed information on the projects financed from the green bond, as well as environmental assessment and performance valuation of such projects, are described in the Post Issuance Attestation Report (En, Cn) issued by the independent verification agency Ernst & Young Hua Ming LLP.
The report is prepared in accordance with the Announcement on the Issuance of Green Financial Bonds in the National Inter-bank Bond Market (Letter  No.39) published by the People’s Bank of China, Green Financial Bond Endorsed Project Catalogue (2015) published by Green Finance Committee, Guidelines for Green Bond Evaluation and Certification (Letter  No.20) published by People’s Bank of China and China Securities Regulatory Commission, Interim Measures for the Issuance and Management of Foreign Institutional Bonds in the Nationwide issued by the People’s Bank of China and the Ministry of Finance (, the Green Bond Principles (2018) published by International Capital Market Association and Notice of The People’s Bank of China on Matters Related to Strengthening the Supervision and Management of Green Financial Bonds (Letter  No.29).