The BRICS-founded New Development Bank (NDB) intends to issue its inaugural Indian rupee bond by October, as revealed by its COO ahead of the BRICS Summit in Johannesburg. Having recently issued a rand bond in South Africa, NDB contemplates issuing local currency bonds in Brazil, Russia, and the UAE.
This initiative aligns with the BRICS nations’ goal to establish the bloc as a counterweight to Western influence. NDB’s strategic shift involves financing projects in one member country’s currency, like funding a South African project in Chinese yuan. The bank’s obligations toward Russia underscore its pivotal role within NDB.
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- New Development Bank (NDB): The NDB is a multilateral development bank created by BRICS countries to support infrastructure and sustainable development projects in member and other emerging economies. It fosters financial cooperation among these nations.
- BRICS Summit: The BRICS Summit serves as a platform for the leaders of Brazil, Russia, India, China, and South Africa to discuss regional and global issues, aiming to enhance collaboration, trade, and political ties among the member states.
- Indian Rupee Bond: An Indian rupee bond is a debt instrument issued by NDB in India’s currency, allowing the bank to raise capital from investors who receive regular interest payments and the principal amount upon maturity.
- Founding Members: Brazil, Russia, India, China, and South Africa are the five founding members of the NDB, collectively aiming to address development challenges in their regions and beyond by providing financial support to sustainable projects.