Brics Bank to raise R4.4bn selling South African bonds

The New Development Bank plans to issue South African bonds in the third quarter to raise R4.4 billion for two infrastructure projects in the continent’s most-industrialised economy.

Standard Bank Group and Absa Group have been picked to arrange the debt sale, Leslie Maasdorp, the NDB’s chief financial officer, told reporters in Cape Town on Monday. The funding is earmarked for Trans-Caledon Tunnel Authority, the state-owned firm responsible for building dams and tunnels to supply water, and the Industrial Development Corporation, which finances development projects.

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The lender — backed by Brazil, Russia, India, China and South Africa and started in 2015 to support infrastructure projects and sustainable development initiatives — expects to target local investors with the bond issuance, Maasdorp said. NDB might raise more funds in future to back a total of R10 billion in projects earmarked for South Africa, he said in an interview.

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