SHANGHAI, June 17. /TASS/: BRICS’ New Development Bank (NDB) priced its inaugural benchmark $1.5 bln three-year COVID Response Bond in international capital markets on June 16, press service of the financial institution reported on Wednesday.
"The net proceeds from the Bond issue will be used to finance sustainable development activities in the NDB’s member countries, including emergency assistance loans to the Bank’s member countries. Such emergency loans could be used to finance direct expenses related to the fight against the COVID-19 outbreak or provide support to governmental measures contributing to economic recovery in the member countries of the NDB," the report said.
The coupon rate equaled 0.625%.
The transaction met exceptional high-quality investor support, with strong participation from central banks and official institutions, which represented 75% of allocations, NDB said. This bond issue is strategically important for its member-states, NDB Vice President Leslie Maasdorp noted. "We are pleased with the overwhelmingly positive investor feedback and the very top quality order book for our inaugural COVID Response Bond in the international markets," he was quoted as saying.
The Bank’s board of directors approved in March 2020 provision of 7 bln yuan (almost $1 bln) to China for the novel coronavirus response as its first program on providing urgent aid in response to the coronavirus outbreak in one of its member-states. On May 12, it was announced that a similar loan worth $1 bln was provided to India. Its Vice President Vladimir Kazbekov told TASS earlier that NDB could also grant targeted loans to other member-states of the organization, including Russia.
