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SHANGHAI, July 18 (Xinhua) -- The New Development Bank (NDB) on Monday issued its first bonds worldwide to raise funds for clean energy projects in member states.
The five-year green bonds, denominated in the Chinese currency renminbi or yuan, are worth 3 billion yuan (449 million U.S. dollars) and were sold in China's onshore interbank bond market.
It was the first time in seven years that a global financial institution has issued the yuan-denominated bond in China.
The bonds attracted investors from home and abroad. At its roadshow last Tuesday, more than 40 domestic and overseas institutional investors subscribed to the bonds.
NDB president K.V. Kamath said the issuance was a milestone for the multilateral development bank. It may help boost sustainable development and serve as a signal of support for capital markets in BRICS countries, Kamath said.
Kamath said the bank will support more clean and renewable energy use to reduce carbon emissions.
Issuance of the yuan-denominated bonds shows the confidence international financial institutions have in the Chinese currency and could promote the internationalization of the yuan, said Chen Siqing, governor of the Bank of China.
Bank of China is the lead underwriter. Other underwriters include China Development Bank, China Construction Bank, Industrial and Commercial Bank of China, HSBC and Standard Chartered.
The NDB also plans to issue another 10 billion yuan in green bonds in China in the next six months, said Leslie Maasdorp, NDB's vice president and chief financial officer.
The bank is also planning to sell bonds in Russia and India to fund green projects there, Maasdorp said.
Related:
BRICS bank issues green bonds in RMB
SHANGHAI, July 12 (Xinhua) -- The New Development Bank (NDB) announced plans on Tuesday to issue green bonds in RMB to raise funds for clean energy and infrastructure projects.
The bank, jointly founded by the BRICS countries and headquartered in Shanghai, plans to issue 3 billion yuan worth of five-year bonds denominated in Chinese currency on July 18. Full story
