BRICS Bank looking to offer bonds in Rand and Yuan

The BRICS New Development Bank (NDB) is mulling a Rand bond issuance in the second half of this year, according to a report by Tass.

The NDB is a financial institution within the BRICS, an association of five developing economies of Brazil, Russia, India, China and South Africa, which is aimed at enhancing cooperation in multiple spheres between the member states.

Speaking at a the St. Petersburg International Economic Forum (SPIEF) on Thursday, NDB President Kundapur Vaman Kamath noted that both the Russian and South African markets were promising in terms of bond issue potential, but would ultimately be determined by market conditions.

Kamath also confirmed that alongside the second currency, the NDB would be issuing yuan-denominated bonds.

“We have approval from China on issue of 10 bln RMB of which we did only one tranche of 3 billion RMB last year,” he said, adding that further issuances will depend on the projects being implemented now.

Earlier this week the ANC renewed its call for the establishment of a BRICS ratings agency, stating that it has become a necessity that needs to made official party policy.

Both Brazil and Russia have also been downgraded by Moody’s in recent times, adding fuel to the desire for an alternative ratings firm that can give investors insight into different metrics and opportunities in developing markets.

However, the concept of a BRICS agency has also faced its share of criticism – specifically its use as political tool, or channel of propaganda.

Read: The biggest banks in South Africa vs the world

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BRICS Bank looking to offer bonds in Rand and Yuan