The New Development Bank has raised R1 billion in the South African bond market, it said in a statement yesterday.
“On September 10, 2024, New Development Bank (NDB) issued three- and five-year notes totalling R1 billion in the South African bond market,” it said.
The book was well supported with more than R2bn in bids across both tenors. Both the three-year and the five-year tranches priced at the tight end of guidance, with the five-year note pricing five basis points tighter than the previous auction. The order book was well diversified with bids being allocated to both institutional investors and the local banks.
Monale Ratsoma, NDB vice-president and chief financial officer, said: “Local currency financing is a core offering of NDB and the bank has a robust pipeline of rand-denominated loans for infrastructure and sustainable development projects.
“NDB’s rand programme will play a central role in funding the bank’s commitments in South Africa, and NDB will, therefore, continue to establish itself as a regular issuer in the local capital market.”
The NDB was established with the purpose of mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development.
Last month, the ninth annual meeting of the NDB was held in Cape Town.
At the meeting, the NDB said it remained steadfast in its mandate to provide funding for infrastructure and major economic development projects, as well as to continue to admit more members from southern hemisphere countries.
During the meeting, the NBD signed a R5 billion loan agreement with Transnet to develop its rail infrastructure. It also approved a R17.8bn loan to the government to finance water and sanitation infrastructure projects.
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