The New Development Bank (NDB) founded by the BRICS countries will raise yuan-denominated funds in China with plans to release bonds in local currencies of its member nations, including the rupee in India, the lender’s vice president said today.
The NDB founded by Brazil, Russia, India, China and South Africa (BRICS) and headquartered in Shanghai, is preparing its first bond issue, which will be in China and denominated in yuan, its vice president Zhu Xian said at the Lujiazui financial forum in Shanghai.
Zhu said while the bank will raise dollars and other major currencies, it wants more funds in member’s currencies, state-run Xinhua news agency reported.
The bank’s board approved four green energy projects in April, which Zhu claims reflects the bank’s commitment to sustainable development.
Early this month Paolu Nogueira Batista, the bank’s vice-president for economic research, strategy and partnerships and chief risk officer said more bonds denominated in local currencies of the BRICS countries, including the rupee in India, will be issued if the bank’s board and local authorities endorse the project plans.
The NDB was established with initial subscribed capital of USD 50 billion with total paid-in capital of USD 10 billion.
The founding members of the NDB have already brought in capital of USD 1 billion as initial contribution.
The NDB announced its first batch of loans in April providing USD 300 million to Brazil, USD 81 million to China, USD 250 million to India and USD 180 million to South Africa.
Together with the China-backed Asian Infrastructure Investment Bank (AIIB), the NDB is expected to contribute to infrastructure development specially in Asia along with the IMF, World Bank and Asian Development Bank.
Studies revealed that the Asian region needed over USD 1 trillion in investment in infrastructure development.