BRICS bank to issue $448 mln of yuan green bonds
SHANGHAI, July 12 (Reuters) - The New Development Bank (NDB), established by the BRICS group of emerging nations, plans to sell 3 billion yuan ($448.37 million) of yuan-denominated, green bonds in China's interbank market.
The green bonds will be issued on July 18 with a 5-year tenor and will be the first such issuance by a bank of its type under guidelines issued by China's central bank in December, according to a news release sent to Reuters.
Bank of China Limited is the lead underwriter and book runner for the issue, while joint underwriters include the Industrial and Commercial Bank of China Limited , China Construction Bank Limited , HSBC Bank (China) Company Limited and Standard Chartered Bank (China) Limited.
Bond proceeds will be used to finance green projects in BRICS countries, the press release said.
"The NDB intends to obtain an international credit rating to broaden its access to global capital markets," said Leslie Massdorp, CFO of NDB.
The bank will also issue bonds in other member currencies in order to mitigate the foreign currency risk of funded infrastructure projects and help develop local currency fund- raising markets, a vice director of the bank said in June, speaking at the Lujiazui Forum in Shanghai.
The BRICS - Brazil, Russia, India, China and South Africa - officially grouped together in 2009 to press for a bigger say in the global financial matters, and the NDB, headquartered in Shanghai, started work last year. ($1 = 6.6909 Chinese yuan renminbi) (Reporting By Engen Tham and Nathaniel Taplin; Editing by Kim Coghill)
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