New Development Bank Raises R1bn In South African Bond Market

The New Development Bank has raised R1 billion in the South African bond market, it said in a statement yesterday.

On September 10, 2024, New Development Bank NDB issued three- and five-year notes totalling R1 billion in the South African bond market, it said.

The book was well supported with more than R2bn in bids across both tenors. Both the three-year and the five-year tranches priced at the tight end of guidance, with the five-year note pricing five basis points tighter than the previous auction. The order book was well diversified with bids being allocated to both institutional investors and the local banks.

Monale Ratsoma, NDB vice-president and chief financial officer, said Local currency financing is a core offering of NDB and the bank has a robust pipeline of rand-denominated loans for infrastructure and sustainable development projects.

NDBs rand programme will play a central role in funding the banks commitments in South Africa, and NDB will, therefore, continue to establish itself as a regular issuer in the local capital market.