New Development Bank Issues Five Billion Yuan in Coronavirus-Combating Bonds on China’s Interbank Market
On 2 April the New Development Bank (NDB) priced five billion yuan (approx. USD$705.22 million) in anti-coronavirus bonds) on China’s interbank bond market.
The three-year offering is the largest ever yuan-denominated bond to be issued by a multilateral bank in China, and drew strong demand from both onshore and offshore investors.
NDB said that the proceeds will be used to fund a 7 billion yuan emergency assistance program loan to China on 19 March 2020, to pay for public health expenditures in the provinces of Hubei, Guangdong and Henan – amongst those worst affected by COVID-19.
“Since the outbreak of Covid-19 in December 2019, the lives of people and the economy have been heavily impacted,” said NDB vice-president and chief financial officer Leslie Maasdorp.
“NDB is fully committed to supporting our member countries fighting the spread of Covid-19 and stands ready to provide the necessary financing.”
The Shanghai-headquartered NDB was first established in July 2015 with the participation of Brazil, Russia, India, China and South Africa, and was previously referred to as the BRICS Development Bank.