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BRICS | The BRICS Bank Issues Maiden South African ZAR Bond Becoming the Highest Rated Issuer Since 2015
The New Development Bank, established by the BRICS group of emerging economies, has successfully raised 1.5 billion ZAR (equivalent to $79 million) during its inaugural South African bond auction.
The successful issuance of the debut ZAR bond in the South African bond market means the BRICS bank has become the highest rated issuer to issue in this market since 2015.
The Shanghai-based New Development Bank (NDB), formed by the countries of Brazil, Russia, India, China, and South Africa, received bids exceeding 2.5 billion ZAR for the 3 and 5-year bonds during the auction. This strong demand allowed the bank to expand the size of the bond offering.

“NDB is seeking to increase its presence in the local capital markets of its member countries, to fund its robust portfolio of local currency loans,” said Leslie Maasdorp, NDB’s chief financial officer. “The proceeds will be used to fund infrastructure and sustainable development projects in South Africa.”
The bond issuance comes amid an upcoming BRICS 15th heads of state and government summit to be held in Johannesburg in August 2023.
According to a Reuters report, the group is expected to discuss how to boost local currency fundraising and lending within the New Development Bank (NDB), or so-called BRICS bank. Local currency use will help de-risk the impact of foreign exchange fluctuations, said South Africa’s Finance Minister, Enoch Godongwana.
Particular attention will also be paid to the relationship between BRICS and African countries to tie in with the summit’s theme of ‘BRICS and Africa.’ In addition, BRICS partners are expected to explore opportunities to benefit from the African Continental Free Trade Area (AfCFTA).
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About New Development Bank
New Development Bank was established with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development. In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries.
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