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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. 
Bloomberg
By Bloomberg
16 Aug
South African Economy As Inflation Rate Rises For First Time In 2017 A collection of mixed denomination South African rand coins and banknotes sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africa’s inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg

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.

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