New Development Bank (NDB) has successfully issued CNY 8.5 billion bond in the China Interbank Bond Market, as part of its strategy to diversify the Bank's presence in the capital markets and mobilize resources for financing sustainable development projects.
NDB established a new benchmark Panda bond transaction in the China Interbank Bond Market which surpass its previous issuance size of CNY 7 bln Panda bond, said a press release here on Monday.
The transaction was met with strong demand from the onshore and offshore investor community which enables NDB to price the bond with negative issuer premium.
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.
Up to 100 percent 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 sale of the Bonds will be invested as part of the NDB's liquid assets.
The transaction was characterized by a strong demand from a broad range of investors, which reflects investors' confidence in NDB and its strong reputation in the market.
"We are pleased with the successful execution of the CNY 8.5 billion bond issuance. I would like to express my gratitude to investors for their continued trust and confidence in NDB and in its mandate of mobilizing resources for high-quality infrastructure and sustainable development projects in BRICS and beyond," said Leslie Maasdorp, NDB Vice-President and Chief Financial Officer.
"In order to support our operations, NDB seeks to increase its presence in local capital markets of our member countries, by issuing and lending in local currencies, including the China Interbank Bond Market. We remain strongly committed to supporting China's efforts aimed at deepening its domestic capital market and this Panda bond issuance contributes to this effort," he added.
Bank of China Limited acted as the Lead Underwriter of the bond. Industrial
and Commercial Bank of China Limited, Agricultural Bank of China Limited,
China Construction Bank Corporation, Ping An Bank Co. Ltd, Bank of Ningbo Co.
Ltd, CITIC Securities Co. Ltd, and Guotai Junan Securities Co. Ltd acted as Joint Underwriters of the bond.