New Development Bank (NDB), a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS), raised 8.5 billion Chinese yuan ($1.20 billion) via Panda bond transaction.

The proceeds will be used as general corporate resources of the bank and to finance infrastructure and sustainable development projects that will benefit its member countries and/or contribute to achieving the sustainable development goals, the Shanghai-based development bank said in a statement.

Pending their use, the net proceeds will be invested as part of NDB's liquid assets.

Panda bonds, or yuan-denominated bonds sold by foreigners on the mainland, were first issued in 2005. Up to 100 percent of the net proceeds from the bond may be remitted offshore in Renminbi and/or converted into other currencies.

Bank of China acted as the lead underwriter of the bond.

Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank Corporation, Ping An Bank Co., Bank of Ningbo Co., CITIC Securities Co., and Guotai Junan Securities Co. acted as joint underwriters.

NDB was established in 2014 to mobilise resources for infrastructure and sustainable development projects in BRICS, other emerging market economies and developing countries.

In 2021, the bank initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries.

(Writing by P Deol; Editing by Anoop Menon)