NDB keen on masala bonds, to launch first issue this year
"We will explore domestic currencies. We are working on China at present and next we will work on India," Kamath told reporters on the sidelines of an industry event late last evening.
He said the bank, which started operations last month, wants to raise a "reasonable sum" from the rupee bond issue this year itself and the size will be determined by its funding requirements. "There are lot of challenges like how do you hedge risks, how do you negative carry till you disburse.
We are working on all these," he said. Kamath said it is necessary for a lender like NDB to fund the growth requirements of its members Brazil, Russia, India, China and South Africa. These countries account for over 60 per cent of the incremental growth annually.
World Bank Group member IFC has in the past done a slew of rupee-denominated bond issuances totalling over $1 billion now, while ADB has raised $50 million. Shanghai headquartered-NDB, which has been set up with a capital of $100 billion, will like to grow its book gradually, Kamath said.
The bank recently announced its first set of loans involving financial assistance of $811 million for sustainable energy projects.