SHANGHAI - The New Development Bank issued 8.5 billion yuan ($1.23 billion) worth of panda bonds in China's interbank bond market on Monday to mobilise resources for financing sustainable development projects, the bank said in a statement.

Proceeds will be used for general corporate resources and to finance infrastructure and sustainable development projects, the bank said.

The issuance came on the eve of the bank's eighth annual meeting, set to take place in Shanghai on Tuesday and Wednesday.

Dilma Rousseff, NDB president and the former president of Brazil, said during the meeting's opening ceremony that the bank would look to work more closely with other multilateral and national banks.

It will also look to finance more projects in local currency to protect borrowers from currency fluctuations, she said. To date, the NDB has loaned $33 billion to more than 96 projects in its five founding-member countries, according to its website.

Other speakers at the opening ceremony included Chinese vice-premier Ding Xuexiang, Chinese finance minister Liu Kun and Anton Siluanov, Russia's finance minister.

Headquartered in Shanghai, the New Development Bank was set up in 2015 by Brazil, Russia, India, China and South Africa, collectively known as the BRICS countries.

Bangaldesh, the United Arab Emirates and Egypt have joined the bank in the years since and Uruguay is in the process of joining. Saudi Arabia is also in talks to join the bank, the Financial Times reported this month. ($1 = 6.9121 Chinese yuan renminbi)

(Reporting by Shanghai Newsroom and Josh Horwitz; Editing by Christopher Cushing and Gerry Doyle)