---
title: "BRICS Bank Raises $94 Million in First South Africa Bond Auction"
description: "The New Development Bank, a financial institution created by the BRICS bloc of emerging markets, raised 1.5 billion rand ($94 million) at its first-ever South African bond auction."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-08-16-brics-bank-raises-94-million-in-first-south-africa-bond-auction/"
published: "2023-08-16T18:15:33"
updated: "2023-08-16T18:24:24"
lang: "en-ZA"
word_count: 141
---

# BRICS Bank Raises $94 Million in First South Africa Bond Auction

> The New Development Bank, a financial institution created by the BRICS bloc of emerging markets, raised 1.5 billion rand ($94 million) at its first-ever South African bond auction.

By Bloomberg · Published 16 August 2023, 20:15 SAST · Updated 16 August 2023, 20:24 SAST

## Key points
- NDB's successful bond sale in South Africa not only increased its presence in the local capital markets to fund its portfolio of loans, but will also be used to fund infrastructure and sustainable development projects.
- The Shanghai-based NDB, established by Brazil, Russia, India, China and South Africa, received more than 2.5 billion rand of bids for the three- and five-year bonds.
- 71% of the bonds were allocated to institutional investors and the rest to local banks.
- The proceeds will be used to fund infrastructure and sustainable development projects in South Africa.
- Standard Bank Group and Absa Group arranged for the sale.

## Content

Shanghai-based NDB, established by Brazil, Russia, India, China, and South Africa, received more than 2.5 billion rand of bids for the three- and five-year bonds, enabling it to increase the size of the deal. It allocated 71% to institutional investors and the rest to local banks in Tuesday’s sale, it said in a statement Wednesday.“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 sale was arranged by Standard Bank Group and Absa Group. Mamokete Lijane, global markets strategist at Standard Bank, told a Bloomberg event in Johannesburg Wednesday that there’s a substantial pool of available capital that ends up gravitating toward credit.