BRICS bank to issue bonds

BEIJING: The New Development Bank (NDB), floated by the BRICS nations to step up infrastructure funding in emerging economies, has decided to raise funds in the financial markets by issuing bonds, a top official of the bank said today.

Addressing the first BRICS Media Summit here, NDB vice president Vladimir Kazbekov noted that both the World Bank and the Asian Development Bank issue bonds to mobilise funds in the European and US financial as well as other developed markets.

In terms of the financing strategy, Shanghai-based NDB is going to raise funds in the financial markets by issuing bonds as also bring in innovative approaches to both financing and investments, he said.

"Currently we are planning to issue domestic currency bonds in the BRICS countries which could help lower the exchange and swap risk and provide new financing channels," he said.

Last year, the five BRICS countries -- Brazil, Russia, India, China and South Africa -- announced the establishment of the NDB which had an initial authorised capital of USD 100 billion and it will start its operations early next year.

Kazbekov said the NDB will closely cooperate with the World Bank, the Asian Development Bank and other financial institutions.

Fund-raising is now one of the bank's priorities, he said.

The NDB is expected to approve its first loan next April to an energy-efficient project.