MyZA

News, Directory, Events and Other Stuff

You are here: Home / News / BRICS bank issues debut bond in SA market

BRICS bank issues debut bond in SA market

BRICS bank issues debut bond in SA market

The New Development Bank (NDB) has successfully issued its debut ZAR bond in the South African bond market, becoming the highest rated issuer to issue in this market since 2015.

The bond, which was issued on Tuesday, was well supported, with over R2.5 billion in bids across both the three-and five-year tranches.

This allowed the NDB to exercise its option to upsize the trade from R1 billion to R1.5 billion. Ninety-four percent of bids were within or lower than price guidance, with the outcome representing the tightest spreads achieved by any non-government issuer in the South African Debt Capital Markets in 2023.

The orderbook was well diversified, with 71% of bids being allocated to institutional investors and the remainder taken up by local banks.

“The NDB is seeking to increase its presence in the local capital markets of its member countries to fund its robust portfolio of local currency loans. The proceeds will be used to fund infrastructure and sustainable development projects in South Africa and the successful outcome sets the benchmark for future issuances by NDB,” NDB Vice-President and Chief Financial Officer, Leslie Maasdorp, said.

The New Development Bank was established with the purpose of mobilising resources for infrastructure and sustainable development projects in BRICS (Brazil, Russia, India, China and South Africa) countries and other emerging market economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development.

In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries. – SAnews.gov.za

nosihle
Wed, 08/16/2023 – 10:35

219 views

Wednesday, August 16, 2023

The Current Development Bank (NDB) has successfully issued its debut ZAR bond in the South African bond market, becoming the highest rated issuer to issue in this market since 2015.

The bond, which was issued on Tuesday, was well supported, with over R2.5 billion in bids across both the three-and five-year tranches.

This allowed the NDB to exercise its option to upsize the trade from R1 billion to R1.5 billion. Ninety-four percent of bids were within or lower than price guidance, with the outcome representing the tightest spreads achieved by any non-government issuer in the South African Debt Capital Markets in 2023.

The orderbook was well diversified, with 71% of bids being allocated to institutional investors and the remainder taken up by local banks.

“The NDB is seeking to increase its presence in the local capital markets of its member countries to fund its robust portfolio of local currency loans. The proceeds will be used to fund infrastructure and sustainable development projects in South Africa and the propitious outcome sets the benchmark for future issuances by NDB,” NDB Vice-President and Chief Financial Officer, Leslie Maasdorp, said.

The Modern Development Bank was established with the purpose of mobilising resources for infrastructure and sustainable development projects in BRICS (Brazil, Russia, India, China and South Africa) countries and other emerging market economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development.

In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its novel member countries. – SAnews.gov.za

Read More at the Source

Category: Tag: , , , , , , , ,

If you feel strongly about this article then feel free to send MyZA a ‘Letter to the Editor’ using the submission form below:

Letter to the Editor

This field is for validation purposes and should be left unchanged.
If this is in response to an article please include that article title here or as the lead in for the first paragraph of your Letter below.

Separate tags with commas

Localise your letter by naming the city your words are about. Add relevant words describing your subject. Single comma separated words of no more than 5
Your Name(Required)
Your Name will be linked to the website below.
Your personal, business or social media web site
Choose NO to not set up a user account on MyZA. User Accounts will allow you to submit letters under your own Author Name

3 Latest Letters to the Editor:

  • Re: R8.5 Million Lotto Winner Claims Prize in Gqeberha

    Dear Editor This is indeed an exciting story for the community. Congratulations to the winner and may this bring positive change to Nomathamsanqa. As someone from KwaMashu, I understand the impact such winnings can have on township communities. Wishing the grandfather all the best. Regards Themba Zulu In Response to/From: R8.5 Million Lotto Winner Claims…

  • Re: Minister Tolashe and Postbank Black Cards

    Dear Editor I appreciate the Minister’s assurance regarding the smooth transition to Postbank Black Cards for grant beneficiaries. As a concerned citizen, I hope the government will ensure that all beneficiaries, especially elderly and vulnerable populations in areas like Soweto, receive adequate assistance during this transition period. The expansion of card replacement locations to include…

  • Lotto Winner Story

    Dear Editor This is indeed an exciting story for the community. Congratulations to the winner and may this bring positive change to Nomathamsanqa. Regards Willem Pieterse In Response to/From: R8.5 Million Lotto Winner Claims Prize in Gqeberha

Reader Interactions

Comments

  1. Fun South African Fact: Towns like Franschhoek and Stellenbosch boast world-class wine farms in beautiful settings.

  2. Fun South African Fact: Towns like Franschhoek and Stellenbosch boast world-class wine farms in beautiful settings.