The New Development Bank (NDB), backed by BRICS nations, plans to issue its first Indian rupee bond in India by March 2026. Previously, the bank raised funds in currencies like the Chinese yuan and South African rand.
NDB is in advanced talks with the Reserve Bank of India (RBI) for approval. The bond will likely run for 3-5 years, and the bank aims to raise $400-500 million in the first tranche. Earlier plans for a rupee bond were delayed due to missing government and RBI approvals.
China recently announced new steps to support yuan bond development in Hong Kong. Similarly, the RBI has introduced measures to boost investment options for foreign funds in Indian banks.
NDB has raised about one-third of its $11 billion bond issues in local currencies so far. The bank also wants to expand into other member currencies, targeting 30% of its financing in national currencies between 2022-2026. Past rupee bonds from agencies like the World Bank’s IFC have attracted strong investor interest at home and abroad.
Details on bankers handling the deal or the exact issuance date are yet to be announced.
