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BRICS Bank plans to place bonds in Russia

1 September 2016


VLADIVOSTOK (Sputnik) — The New Development Bank (NDB) is preparing for placing bonds on the Russian market, bank’s Vice President Zhu Xian told TASS on "We have such plans, but it is too early now to talk about exact time of issue bonds. We are discussing our idea with the Russian government," he said.

According to Zhu Xian, the Bank has prepared the requirements for the placement of securities. "Of course, prices should be competitive, otherwise our bonds will be expensive for Russian investors," he added.

On July 19, NDB has placed the first series of bonds for 3 bln yuan on China Interbank Bond Market.

The bond’s maturity period is 5 years. The interest rate is 3.07%, according to the statement. More than 30 investors participated in the bond placement. The demand for bonds exceeded 9 bln yuan.

Earlier, South African Vice-President of the bank Leslie Maasdorp said in an interview with TASS in total the bank plans to raise up to $1 bln and part of the bonds will be issued in the national currencies.

BRICS is an informal interstate association of Brazil, Russia, India, China and South Africa. The agreement on the establishment of the New Development Bank was signed during the sixth BRICS summit in Brazil in 2014.

NDB is expected to become a platform for increasing mutual investments and trade among its member-states, as well as for financing of infrastructure projects in the BRICS countries and developing countries.

The bank’s authorized capital is $100 bln. The bank is headquartered in Shanghai.

Source:
TASS Newswire