The development bank of the BRICS emerging market nations has returned to capital markets with its first U.S. dollar bond issuance since Russia’s invasion of Ukraine, causing challenges for the China-based lender as Moscow is a major shareholder.
The New Development Bank this week issued a $1.25 billion green bond. None of the money will be lent to Russia, which is facing a raft of international sanctions, said the bank’s Chief Financial Officer Leslie Maasdorp. “This is a major step forward because now we're starting a new journey,” he told Devex.
Why it matters: After the invasion last February, investors were spooked somewhat because Moscow holds about 20% of the bank’s shares and faces tight sanctions. At times, NDB bonds faced illiquid trading conditions. The 7-year-old bank has worked for months to reassure investors it is a safe bet.
About the author
Shabtai Gold
Shabtai Gold is a Senior Reporter based in Washington. He covers multilateral development banks, with a focus on the World Bank, along with trends in development finance. Prior to Devex, he worked for the German Press Agency, dpa, for more than a decade, with stints in Africa, Europe, and the Middle East, before relocating to Washington to cover politics and business.