The five-nation BRICS bank has announced that they will soon issue around 3-5 billion ($460-767 million) of yuan in bonds in China in the second quarter of this year. Also, New Development bank is planning to raise nearly $1.5 billion from the market by issuing bonds in the next two years.
The bank has also secured an AAA-rating from two Chinese credit rating firms that will ensure low funding costs. The five nation bank added in its report that the bank will keep a portion of the proceeds to finance projects in China, and convert the rest into US dollars, and lend them to other countries.
“The New Development Bank planned to issue its first bond in China because the renminbi value is much more stable (compared with local currencies of other BRICS nations). China has a deep, liquid bond market,” China Daily quoted Leslie Maasdorp, chief finance officer of NDB
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