New Development Bank (NDB), a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS), has raised 1.5 billion South African rands ($78.82 million) via its debut “ZAR bond issuance” to fund infrastructure and sustainable projects in the African nation.

The order book crossed over ZAR2.5 billion across both the 3- and 5-year tranches, allowing the bank to upsize the issue from ZAR1 billion. 

The order book was well diversified, with 71 percent of bids allocated to institutional investors and the remainder taken up by local banks, NDB said in a statement.

“NDB is seeking to increase its presence in the local capital markets of its member countries to fund its robust portfolio of local currency loans,” said Vice-President and Chief Financial Officer Leslie Maasdorp.

He stated that the proceeds will be used to fund infrastructure and sustainable development projects in South Africa, adding that the successful outcome sets the benchmark for future issuances.

(Writing by P Deol; Editing by Anoop Menon)


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