Beijing: Shanghai-based New Development Bank (NDB) is set to issue its first yuan-denominated bonds, and is eyeing future funding for infrastructure projects.

The bank was founded in July 2014 by the BRICS countries of Brazil, Russia, India, China and South Africa to finance sustainable development in the emerging markets and developing countries, the China Daily reported on Wednesday.

Its first five-year yuan-denominated bonds, also referred as green bonds, will be issued after receiving a rating from international ratings agencies as well as getting authorities’ approval, said Paolu Nogueira Batista, the bank’s vice-president for economic research, strategy and partnerships and chief risk officer.

New Development bank BRICSNew Development bank BRICS

BRICS leaders at the 6th BRICS summit where they signed the agreement to form New Development Bank. File Photo. Reuters

Batista outlined the bank’s plans on Monday at the closing ceremony of the Shanghai Forum, an annual meeting of officials, academics, business chiefs and world opinion leaders, that discusses issues such as business solutions and social governance.

Batista said that more bonds denominated in local currencies of the BRICS countries, including the rupee in India, will be issued if the bank’s board and local authorities endorse the project plans.

He said that as a result local investors will be more engaged in projects financing sustainable development because they will be exposed to less currency exchange volatility with bonds issued in local currencies.

The NDB announced its first batch of loans on 16 April, providing $300 million to Brazil, $81 million to China, $250 million to India and $180 million to South Africa.

So far, the projects the bank has been working on are all financing sustainable energy projects, such as solar power and hydropower, an initiative that is included in the bank’s articles of agreement.

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BRICS New Development Bank to issue bonds in Chinese currency