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.
Bond Summary Terms
| Issuer | New Development Bank (NDB) |
| Issuer rating | AA+ (S&P) / AA (Fitch) |
| Amount | RMB 6,000,000,000 |
| Issuance Date | 31 January 2024 |
| Settlement Date | 1 February 2024 |
| Maturity Date | 1 February 2029 |
| Tenor | 5 years |
| Currency | RMB |
| Listing | China Interbank Bond Market |
| Lead Underwriter | Bank of China Limited |
| Joint Underwriters | Agricultural Bank of China Limited, Bank of Communications Co., Ltd., China Construction Bank Corporation, DBS Bank (China) Limited, Industrial and Commercial Bank of China Limited, and Industrial Bank Co., Ltd. |
“The successful issuance of largest-ever 5-year Panda bond marks a pivotal moment for the New Development Bank. It demonstrates the strong market appeal of our mission and mandate to mobilize resources for financing infrastructure and sustainable development. This transaction not only showcases the immense interest from investors but also highlights their confidence in NDB’s strategic direction of evolving into a leading provider of solutions for infrastructure and sustainable development for EMDCs,” said Mr. Leslie Maasdorp, NDB VP & CFO. “NDB looks forward to further strengthening its presence in the China Interbank Bond Market, and we remain committed to leveraging this success to further contribute to sustainable development and economic growth in our member countries.”
With the successful issuance of the RMB 6 billion 5-year Panda bond, the total amount of Panda bonds issued by NDB has reached RMB 47.5 billion.
Background information
The New Development Bank was created in 2015 by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in the BRICS and other emerging market economies and developing countries. In 2021, the NDB began expanding its membership and admitted Bangladesh, Egypt, the United Arab Emirates and Uruguay as its new member countries. For more information on the NDB, visit www.ndb.int.