BRICS bank issues yuan-denominated green bonds

Kundapur Vaman Kamath, president of the New Development Bank (NDB), attends a session where New Development Bank holds its first green bond roadshow, in Shanghai, China July 12, 2016.[Photo/Agencies]

SHANGHAI - The New Development Bank (NDB) announced plans on Tuesday to issue green bonds in renminbi to raise funds for clean energy and infrastructure projects.

The bank, jointly founded by the BRICS countries and headquartered in Shanghai, plans to issue 3 billion yuan worth of five-year bonds denominated in Chinese currency on July 18.

Bank of China has been mandated as the lead manager on the deal, with China Development Bank (CDB), China Construction Bank (CCB), Industrial and Commercial Bank (ICBC) of China, HSBC and Standard Chartered in the underwriting group.

According to Zhang Xin, deputy director of the People's Bank of China Shanghai headquarters, with bonds issued in the first half of the year reaching 75 billion yuan, 33 percent of the world's total , China has quickly become the world's largest green bond market

The NDB board approved loans to fund four green energy projects worth $811 million in April.