The New Development Bank (NDB), a financial institution set up by the BRICS emerging markets group, raised 1.5 billion rand ($94 million) in its first bond offering in South Africa.
The Shanghai-based bank, founded by Brazil, Russia, India, China and South Africa, received offers of more than 2.5 billion rand for the 3- and 5-year bonds, which allowed it to increase the size of the offering.
It said in a statement, on Wednesday, that it had allocated 71% of the financing it raised in the offering that was held last Tuesday to institutional investors and the rest to local banks.
Leslie Masdorp, CFO of the bank, explained that the bank is trying to “enhance its footprint in the local capital markets of member countries with the aim of financing its strong portfolio of loans denominated in local currencies for members. The financing generated from this offering will be used to support infrastructure projects and sustainable development in South Africa.”
The bond said on the sidelines of a meeting organized by Bloomberg in Johannesburg on Wednesday that there is a large pool of capital available that is eventually attracted to credit.
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