BRICS bank plans to issue rupee, yuan bonds this year: Kamath

Source: AIR Twitter handle
The New Development Bank (NDB), set up by the BRICS countries — Brazil, Russia, India, China and South Africa — plans to issue bonds this year in the Indian rupee and Chinese yuan, its President K V Kamath said on Friday.

The bank sold its first $437 million yuan-denominated bonds in China last year in July to fund clean energy projects in member-states.

Kamath, a former executive with India’s largest private lender ICICI Bank, told state-run Xinhua news agency that after last year’s issuance of bonds, the preparation for the second batch of yuan-denominated bonds, possibly in the second half of this year, is expected to be more smooth.

The size will be around three billion yuan, similar to the last one.

He said the issuance will come after the bank is rated by international rating agencies.

Masala bonds of $300-500 million of masala bonds will be issued after July, added Kamath. Masala bonds are rupee-denominated bonds issued outside India.

Kamath said NDB plans to lend $2.5-3 billion to fund 15 projects to member-states this year, up from $1.5 billion for seven projects in 2016.

Most projects last year were connected to clean energy and transportation. Kamath said the loans will go to more sectors this year. For example, in India the bank will prioritise rural drinking water networks and infrastructure projects.

BRICS bank was set up with an initial authorised capital of $100 billion after leaders of Brazil, Russia, India, China, and South Africa signed a treaty for its establishment during the sixth BRICS Summit in Fortaleza, Brazil, in 2014. It officially opened in Shanghai in 2015.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel