BRICS Bank Plans to Issue Indian Rupee Bond

BRICS Bank to Issue INR Bond

The New Development Bank (NDB), also known as the BRICS Bank, plans to issue its first Indian rupee bond by October. The NDB is a multilateral development bank established by the BRICS nations, aiming to mobilize resources for infrastructure and sustainable development projects in emerging markets and developing countries. The bank recently expanded its membership, admitting Bangladesh, Egypt, United Arab Emirates, and Uruguay as new member countries.

Key Points:

The BRICS Bank is planning to issue its first Indian rupee bond by October.
The bank aims to increase local currency lending from about 22% to 30% by 2026.
The bank recently admitted new member countries, expanding its membership.
It is seeking to increase its presence in the local capital markets of its member countries.
The proceeds from the bond issuance will be used to fund infrastructure and sustainable development projects.

The NDB is also looking to finance projects in other member countries using their respective currencies. This approach would allow projects in countries like South Africa to be financed in Chinese yuan instead of U.S. dollars. The bank’s chief financial officer emphasized the goal of lending about 30% of its total in local currencies. In addition, the NDB recently announced the successful issuance of its first ZAR bond in the South African market to fund local projects.

Hot Take:

The BRICS Bank’s plan to issue an INR bond and increase local currency lending demonstrates its commitment to promoting sustainable development and strengthening the financial infrastructure of its member countries. By expanding its membership and exploring new financing methods, the bank aims to support the economic growth and stability of emerging markets. This move also reflects the growing influence and collaboration among the BRICS nations in shaping the global financial landscape.