NDB prices inaugural USD 1.5 billion 3-year COVID Response Bond in international capital markets

SHANGHAI,June 18,2020 -- On June 16,2020,the New Development Bank (NDB) priced its inaugural benchmark USD1.5 billion 3-year COVID Response Bond in the international capital markets.

The net proceeds from the Bond issue will be used to finance sustainable development activities in the NDB's member countries,including emergency assistance loans to the Bank's member countries. Such emergency loans could be used to finance direct expenses related to the fight against the COVID-19 outbreak or provide support to governmental measures contributing to economic recovery in the member countries of the NDB.

The transaction met exceptional high-quality investor support,with strong participation from central banks and official institutions,which represented 75% of allocations. The investor geographic distribution of the final Bond book was as follows: 56% - Asia,29% - EMEA,15% - Americas.

The robust investor demand allowed the NDB to tighten the pricing by 7 basis points compared to the upper bound of initial price thoughts and to achieve the coupon rate of 0.625%.

"We are pleased with the overwhelmingly positive investor feedback and the very top quality order book for our inaugural COVID Response Bond in the international markets. This bond issue is strategically important in addressing the economic and social challenges that our member states are facing in their fight against the COVID-19 outbreak," said Mr. Leslie Maasdorp,NDB Vice President and Chief Financial Officer. "I would like to thank our investors for their trust in our credit and our lead managers who contributed to the successful execution of the transaction".

Citi,Credit Agricole CIB,Goldman Sachs International,HSBC and J.P. Morgan acted as lead managers for the Bond. Bank of China,Barclays,DBS Bank Ltd.,Industrial and Commercial Bank of China Limited,Mizuho Securities,Standard Chartered Bank,TD Securities acted as co-managers for the Bond.

Bond Summary Terms

Issuer

New Development Bank (NDB)

Issuer rating

AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA)

Amount

USD 1,500,000,000

Settlement date

June 23,2020

Maturity date

June 23,2023

Issue price

99.896%

Issue yield

0.660%

Coupon

0.625% annual

Denomination

USD 200k+1k

Listing

Euronext Dublin Regulated Market – Irish Stock Exchange

Lead managers

Citi,HSBC and J.P.

Morgan

Co-managers

Bank of China,Industrial and Commercial

Bank of China Limited,

TD Securities

Background information

In December 2019,the NDB registered its inaugural USD 50 billion Euro Medium Term Note Programme in the international capital markets. The Programme has been rated "AA+" by Fitch and has been assigned "AA+" long-term and "A-1+" short-term issue ratings by S&P. The Base Prospectus,each supplement thereto and any Final Terms published in relation to any series of Notes is or will be available for viewing at https://www.ise.ie/Market-Data-Announcements/Debt/Individual-Debt-Instrument-Data/ShowSecSpecialist/?secID=10710.

The NDB established Emergency Assistance Facility to meet the emergency needs of its member countries. Such emergency loans to the member countries could be used to finance direct expenses related to the fight against the COVID-19 outbreak or provide support to governmental measures contributing to economic recovery in member countries. The NDB targets to provide up to USD 10 billion in crisis-related assistance. As at June 17,the Bank has provided RMB 7 billion Emergency Assistance Program Loan to the Government of China as well as USD 1 billion Emergency Assistance Program Loan to the Government of India.

The NDB was established by Brazil,Russia,India,China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries,complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose,the NDB will support public or private projects through loans,guarantees,equity participation and other financial instruments. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR).