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NDB issues USD 1.5 billion benchmark bond

SHANGHAI, April 22, 2021 /PRNewswire/ -- On April 20, 2021, the New Development Bank (NDB) priced its 5-year USD 1.5 billion benchmark bond. This transaction is the third USD benchmark bond offering of the Bank in the international markets.

The net proceeds of the Bond will be used for financing sustainable development activities as well as COVID-19 Emergency Program Loans to the Bank's member countries. The NDB established the Emergency Assistance Facility in April 2020, to provide up to USD 10 billion in crisis-related assistance to its member countries, including USD 5 billion for financing healthcare and social safety-related expenditures, as well as USD 5 billion for supporting economic recovery efforts.

This transaction was met with significant support from the global investor community. The high-quality order book highlights the recognition of NDB's mandate and its growing stature in the USD market. The distribution of investors of the final book was as follows, by geography: Asia – 36%, EMEA – 60%, Americas – 4% and by investor type: Central Banks/Official Institutions – 78%, Banks – 16%, Asset Managers – 4%, Private Banks – 1%, Others – 1%. The book was oversubscribed with the order book in excess of USD 1.975 billion.

The bond was priced with no new issue premium at MS +25bps. The final price was a tightening of 2bps from initial pricing thoughts and coupon was set at 1.125%.

"We are delighted with the overwhelmingly positive investors support and top quality order book for our first USD benchmark bond of 2021. NDB solidified its position as a regular SSA issuer in the international capital markets attracting a diversified and high quality investor base including more than 20 new investors with this transaction," said Mr. Leslie Maasdorp, NDB Vice President and Chief Financial Officer. "The strong market reception for the transaction represents the investors recognition of NDB's strong credit profile. I would like to thank the consistent and deep support provided by the global investors and our lead managers which helped underpin this very successful issuance."

Citigroup Global Markets Limited, HSBC London PLC, Industrial and Commercial Bank of China (Asia) Limited, J.P. Morgan P, Standard Chartered Bank UK, TD Securities (Canada) Inc. acted as lead managers for the transaction.

  Bond Summary Terms

Issuer

New Development Bank (NDB)

Issuer rating

AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA)

Format

Reg S, Category 2

Size

USD 1,500,000,000

Settlement date

27 April, 2021

Maturity date

27 April, 2026

Yield

1.154% annual / 1.151% semi-annual

Coupon

1.125% per annum

Denominations

USD 200k+1k

Listing

Regulated Market of the Irish Stock Exchange, trading as Euronext Dublin

Lead managers

Citi, HSBC, ICBC, J.P. Morgan, Standard Chartered, TD Securities

In 2021, NDB plans to raise approximately USD 7 billion equivalent across international and domestic capital markets across different currencies and tenors with strong emphasis on ESG.

Background information

In December 2019, NDB registered its inaugural USD 50 billion Euro Medium Term Note Programme in the international capital markets. The Programme has been rated "AA+" by Fitch and has been assigned "AA+" long-term and "A-1+" short-term issue ratings by S&P.

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. The NDB received 'AA+' long-term issuer credit ratings from S&P and Fitch and 'AAA' foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR) and Analytical Credit Rating Agency (ACRA).



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