NDB prices $2bn COVID-19 benchmark bond
The New Development Bank has priced its $2 billion, five-year COVID Response Bond in the international capital markets. This is the NDB’s largest-ever USD benchmark bond.
The bond was issued at a spread of 37 bps over mid-swaps and pays a fixed annual coupon of 0.625%. Bank of China, Barclays, Citi, Goldman Sachs International and Standard Chartered Bank are acting as lead managers of the bond issuance. China Construction Bank, Industrial and Commercial Bank of China Limited, HSBC, Nomura, TD Securities, Royal Bank of Canada are co-lead managers.
The net proceeds of the bond issuance will be used to finance sustainable development activities in the bank’s member countries, including COVID-related emergency assistance programs. NDB is targeting to provide up to $10 billion in crisis-related assistance, including financing healthcare and social safety-related expenditures, as well as supporting economic recovery efforts.
