BRICS bank to issue Indian rupee bonds

The bank sold its first 3 billion yuan worth ($437 million) yuan-denominated bonds in China in July 2016 to fund clean energy projects in member states. Kamath told Xinhua news agency that following last year’s issuance, the preparation for second batch of yuan-denominated bonds, possibly in the second half of this year, is expected to be more smooth. 

The size will be around 3 billion yuan, similar to the last one. He said the issuance will come after the bank is rated by international rating agencies. Between $300 million to $500 million of rupee-denominated Masala Bonds will be issued after July, Kamath added.

 Masala Bonds are rupee-denominated bonds issued outside India. Kamath said the NDB plans to lend $2.5-3 billion to fund 15 projects in member-states this year, up from $1.5 billion for seven projects in 2016. 

Most projects last year were connected to clean energy and transportation. Kamath said the loans will go to more sectors this year. In India, the bank will prioritise rural drinking water networks and infrastructure projects. The Brics bank was set up with an initial authorised capital of $100 billion in 2014.