‘BRICS bank’ says to issue bonds in members’ local currencies

The New Development Bank (NDB), an infrastructure-focused lender established by the BRICS emerging economies, plans to issue debt in the local currencies of its five member countries, the bank’s president said.

Known as the BRICS bank, the NDB is seen by its members as an alternative to the World Bank. Its launch last year follows the establishment of the China-led Asian Infrastructure Investment Bank (AIIB).

NDB, run by K.V. Kamath, a former executive of India’s largest private lender ICICI Bank, already has $1 billion in capital, which is set to double next year and increase to $50 billion in the future.

“Our first (debt) issues will be in the local currencies. Clearly, the demand is for rouble-based funding (in Russia), companies or government do not want to take an exchange risk,” Kamath told Reuters in an interview

REUTERS: ‘BRICS bank’ says to issue bonds in members’ local currencies