BRICS bank places $1.25B three-year green bonds

The New Development Bank (NDB) created by BRICS (Brazil, Russia, India, China, and South Africa) member countries has successfully priced a $1.25 billion 3-year benchmark green bond under the Bank’s $50 billion Euro Medium Term Note Program, Report informs referring to the bank’s website.

The issuance represents NDB’s return to the international capital markets and is also the first USD Green Bond issued by the Bank, demonstrating its commitment to sustainable capital markets.

The transaction received a strong reception from the investor community. The order book comprised of high-quality investors, with 78% of the final allocation to Central Banks and Official Institutions, and the remaining being taken up primarily by bank treasuries and asset managers. The geographically diverse book had in excess of 50 investors from Asia, Europe and the Americas.

The net proceeds from the issuance of the bond will be allocated to finance and/or refinance eligible green projects as defined in the NDB’s Sustainable Financing Policy Framework.

Citi, Crédit Agricole CIB, HSBC and ICBC acted as the joint lead managers to the issuance. CACIB also acted as the Green Structuring Advisor.