Brics bank to issue first yuan-denominated bonds

The Shanghai-based bank founded by Brazil, Russia, India, China and South Africa (BRICS) and headed by eminent Indian banker M V Kamath plans to finance sustainable development projects in the emerging markets and developing countries. 

The bank's first five-year yuan-denominated bonds, also referred as green bonds, will be issued after receiving a rating from international ratings agencies as well as getting authorities' approval, said Paolu Nogueira Batista, the bank's vice president for economic research, strategy and partnerships and chief risk officer.

More bonds denominated in local currencies of the BRICS countries, including the rupees in India, will be issued if the bank's board and local authorities endorse the project plans, he said while outlining bank's plans on Monday at the closing ceremony of the Shanghai Forum, an annual meeting of officials, academics, business chiefs and world opinion leaders, state-run China Daily reported.

The New Development Bank (NDB) is established with initial subscribed capital of $50 billion with total paid-in capital of $10 billion. The founding members of the NDB have already brought in capital of $one billion as initial contribution. The bank announced its first batch of loans on April 16, providing $300 million to Brazil, $81 million to China, $250 million to India and $180 million to South Africa.