The New Development Bank (NDB) issued a three-year RMB 3 billion Panda bond in China’s interbank bond market, priced at a 1.88 percent coupon rate, the bank announced. The offering drew both domestic and international investors, including central banks and official institutions, with strong demand underscoring NDB’s reputation as a high-quality issuer in the Chinese market.
With this transaction, NDB’s total Panda bond issuance has reached RMB 78.5 billion, with RMB 47.5 billion currently outstanding. Monale Ratsoma, NDB’s Vice-President and Chief Financial Officer, called the issuance another milestone in the bank’s push to finance infrastructure and sustainable development projects in member countries by expanding local currency financing. “By building a robust local currency funding base, the NDB mitigates foreign exchange risks while also contributing to further development of local capital markets,” Ratsoma said.
China Construction Bank acted as Lead Underwriter, with the Agriculture Bank of China, Bank of China, Export-Import Bank of China, Industrial and Commercial Bank of China, China International Capital Corporation, and CSC Financial serving as Joint Underwriters. The bond reflects NDB’s broader strategy to reduce reliance on hard-currency borrowing and tap into local capital markets where the bank’s projects are located.
Panda bonds—yuan-denominated bonds issued by foreign entities in China—have become a key tool for multilateral lenders looking to diversify funding sources and align borrowing with the currencies of projects they finance. For NDB, which was established by BRICS countries to support infrastructure and sustainable development, issuing in yuan helps match assets and liabilities while supporting deeper integration into China’s financial system.
The strong reception signals continued confidence in NDB’s creditworthiness and its role as a bridge between member countries and Chinese capital markets, especially as global development finance faces tighter conditions elsewhere.
