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Add to Preferred SourcesThe New Development Bank successfully issued a 3-year RMB Coronavirus Combating Bond in the China Interbank Bond Market. The Bank raised RMB 5 bln, garnered interest from a high-quality diversified investor base both onshore in mainland China, as well as offshore.
The bond was priced at the lower end of the announced pricing range, and the transaction represents the largest-ever RMB-denominated bond as well as the first RMB-denominated Coronavirus Combating Bond issued by multilateral development bank in China.
The aim of this bond issue is to support the Chinese Government in the financing of public health expenditure in Hubei, Guangdong and Henan provinces that are hit the hardest by COVID-19. The proceeds of the bond will be fully utilized to finance the RMB 7 bln Emergency Assistance Program Loan to the People’s Republic of China approved by the Board of Directors of the Bank on March 19, 2020. This loan will contribute in a material fashion to improving the resilience of the public health sector in the three provinces.
“Since the outbreak of the Novel Coronavirus Disease – 19 (COVID-19) in December 2019, the lives of people and the economy have been heavily impacted,” said Mr. Leslie Maasdorp, NDB Vice President and CFO. “NDB is fully committed to supporting our member countries during this period of crisis to fight the spread of COVID-19 and stand ready to provide the necessary financing to this objective.”
The Coronavirus Combating Bond met an extraordinary demand from investors. The final order book was in excess of RMB 15 bln, more than 3 times oversubscribed. The bond distribution was well balanced between onshore and offshore investors.
Original source: NDB
Published on 03 April 2020