On July 24, 2024, New Development Bank (NDB) issued an RMB 8 billion, 3-year Panda Bond priced at 2.03% in China’s Interbank Bond market. This transaction marks NDB’s second Panda bond issuance in 2024, following the largest-ever 5-year Panda bond issued in January.
The Bond issuance attracted significant interest from investors, with more than 30 onshore and foreign investors participating. The investors mainly included Central Banks, Official Institutions, Bank Treasuries, and Funds. The final pricing of the bond settled at the lower end of the pricing guidance, underscoring strong market confidence in NDB’s mission to mobilise resources for financing infrastructure and sustainable development projects.
The oversubscription of the bond reached 1.7 times, highlighting robust demand and further bolstering investor confidence in NDB’s mandate. This successful issuance reinforces NDB’s commitment to facilitating sustainable development through strategic financing initiatives.
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 contribute to achieving the Sustainable Development Goals (SDGs).
Bond Summary Terms
| Issuer | New Development Bank (NDB) |
| Issuer rating | AA+ (S&P) / AA (Fitch) |
| Amount | RMB 8,000,000,000 |
| Issuance Date | 24 July 2024 |
| Settlement Date | 25 July 2024 |
| Maturity Date | 25 July 2027 |
| Tenor | 3 years |
| Currency | RMB |
| Listing | China Interbank Bond Market |
| Lead Underwriter | Industrial and Commercial Bank of China Limited |
| Joint Underwriters | Agricultural Bank of China Limited, Bank of China Limited, China Construction Bank Corporation, DBS Bank (China) Limited, Ping An Bank Co., Ltd., Standard Chartered Bank (China) Limited and CITIC Securities Co.,Ltd. as joint lead underwriters |
“The successful issuance of our second Panda bond this year demonstrates the strong market appeal of our mission and mandate. We appreciate the strong investor interest and look forward to leveraging this momentum for future financing initiatives,” said Mr. Monale Ratsoma, NDB’s Vice President and Chief Financial Officer.
“We are delighted with the overwhelming response to our latest Panda bond issuance. The significant oversubscription underscores the appeal of our mission to mobilise resources for critical infrastructure projects. We remain dedicated to expanding our presence in the China Interbank Bond Market and contributing to the region’s economic resilience,” said Mr. Zhongxia Jin, Director General of NDB’s Treasury and Portfolio Management Department.
With the successful issuance of the RMB 8 billion 3-year Panda bond, the total amount of Panda bonds issued by NDB has reached RMB 55.5 billion.
Apart from bond issuances, NDB is actively working to build an international cooperation platform, promote diversified investment and financing and advance high-level financial openness in the Panda Bond market. NDB, as the largest issuer in the Panda Bond market, recently hosted a Seminar to discuss ways to further improve Panda Bond issuances.
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, visit www.ndb.int.