On December 27, 2023, New Development Bank (NDB) successfully concluded the signing of its debut syndicated term loan facility (Syndicated Loan) of USD 2 billion (base amount of USD 1.25 billion and greenshoe option of USD 0.75 billion).
The Syndicated Loan was well supported and NDB received commitments totalling USD 2.59 billion from 15 financial institutions, allowing NDB to exercise the option to upsize the facility from USD 1.25 billion to USD 2.00 billion.
The Syndicated Loan was well diversified, with 42.5% committed by five mandated lead arrangers, bookrunners and underwriters; 45.5% committed by five mandated lead arrangers; 5.0% each committed by two lead arrangers and by two arrangers respectively; and 2.0% committed by a manager.
Mr. Leslie Maasdorp, NDB’s Vice-President and Chief Financial Officer commented that “the successful execution of the USD 2 billion syndicated term loan facility is a first of its kind fundraising for NDB. The facility enables us to diversify our funding sources to new markets and broaden our investor base for future debt issuances. This will support NDB’s growing project portfolio across its member countries. The loan proceeds will be used to finance infrastructure and sustainable development projects and for NDB’s general corporate purposes.”
Summary terms of the Syndicated Loan
| Borrower | New Development Bank (NDB) |
| Currency | USD |
| Amount | USD 2,000,000,000 |
| Interest Rate Profile | Floating rate |
| Interest Rate | Compounded SOFR + 0.70% p.a. |
| Tenor | 36 months |
| Syndication Launch Date | October 18, 2023 |
| Agreement Signing Date | December 27, 2023 |
| Mandated Lead Arrangers, Bookrunners and Underwriters (MLABUs) | Bank of China Limited, Macau Branch, DBS Bank Ltd., First Abu Dhabhi Bank PJSC, Standard Chartered Bank (Hong Kong) Limited and State Bank of India, Hong Kong Branch |
| Original Lenders | MLABUs, Agricultural Bank of China Shanghai Branch, Agricultural Bank of China Singapore Branch, Bank of Communications Co., Ltd (acting through its Offshore Banking Unit), China Construction Bank (Asia) Corporation Limited, China CITIC Bank International Limited, Industrial and Commercial Bank of China (Macau) Limited, Industrial and Commercial Bank of China Limited, Singapore Branch, Fubon Bank (Hong Kong) Limited, Gulf Bank K.S.C.P. and The National Bank of Ras Al Khaimah (P.S.C.) |
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.