BRICS Bank Aims to Raise USD449 Million From Its First Yuan-Denominated Green Bond
Yicai Global
/SOURCE : Yicai
BRICS Bank Aims to Raise USD449 Million From Its First Yuan-Denominated Green Bond

(Yicai Global) July 13 -- The New Development Bank, a lender backed by the BRICS countries, aims to raise CNY3 billion (USD449 million) in new financing by issuing its first yuan-denominated green bond next week.

Scheduled for issue on July 18, the five-year, AAA-rated bond carries an annual interest rate of between 2.8 percent and 3.6 percent, the Shanghai-based bank said yesterday. It is also the first green bond issued by the NDB in China.

Previously called BRICS Development Bank, the lender launched a year ago after being jointly set up by Brazil, Russia, India, China and South Africa. Its board approved the first renewable energy projects in April: one each for Brazil, China, India and South Africa. The proceeds from next week's sale will largely go to future green and clean energy projects.

China's central bank has approved NDB to sell bonds worth up to CNY10 billion, said Mr. Leslie Maasdorp, the bank's South African vice president and chief financial officer. Subsequent financing projects will be launched in later stages.

"After obtaining international credit rating, the NDB will further issue bonds denominated in US dollars and the currencies of other member states," Mr. Maasdorp said.

The Bank of China Ltd. [SHA:601988] is the lead underwriter for next week's green bond issue. The joint underwriters are Industrial and Commercial Bank of China Ltd. [SHA:601398], China Construction Bank Corp. [SHA:601939], China Development Bank, Hong Kong and Shanghai Banking Corp. [NYSE:HSBC] and Standard Chartered Bank.

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