This first ZAR bond in the South African bond market made NDB the highest-rated issuer to issue in the South African market since 2015…reports Asian Lite News
The first-ever South African bond auction by the New Development Bank (NDB), a financial institution created by the BRICS bloc of emerging markets, raised 1.5 billion rand ($94 million) after its launch two days ago.
In a statement, the Shanghai-based bank said it had received more than 2.5 billion rand of bids for the three- and five-year bonds, enabling it to increase the size of the deal.
It allocated 71% to institutional investors and the rest to local banks.
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“NDB is seeking to increase its presence in the local capital markets of its member countries, to fund its robust portfolio of local currency loans,” said Leslie Maasdorp, NDB’s chief financial officer.
“The proceeds will be used to fund infrastructure and sustainable development projects in South Africa,” he added.
The sale was arranged by leading South African banks Standard Bank Group and Absa Group.
This first ZAR bond in the South African bond market made NDB the highest-rated issuer to issue in the South African market since 2015.
The New Development Bank was established with the purpose of mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development.
In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries.
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