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)|
Ernst & Young Hua Ming LLP has undertaken third party pre-assurance verification for the bond in accordance with the Green Bond guidelines issued by PBOC.
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.