Delhi / Moscow / Shanghai / Brasilia
💰 BRICS’ NDB to Issue ₹3,300–₹4,100 Crore Rupee Bonds by March 2026
1. Key Development
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New Development Bank (NDB), backed by BRICS nations, plans first-ever Indian rupee-denominated bond issuance.
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Target timeline: Before March 2026.
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Planned raise: $400–500 million (₹3,300–₹4,100 crore approx.).
2. Bond Details
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Tenure: 3–5 years.
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Mode: Domestic Indian bond market.
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Status: Final approvals awaited from RBI and Government of India.
3. Why This Matters
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Diversification: Expands beyond USD dominance.
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Currency push: Aligns with India & China’s push for greater acceptance of local currencies.
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Market depth: Adds liquidity and aids better price discovery in the Indian bond market.
4. Financial Highlights
| Item | Data | INR Value (approx.) |
|---|---|---|
| Planned Issue Size | $400–500 million | ₹3,300–₹4,100 crore |
| NDB Total Bond Issues | $11 billion | ₹90,200 crore |
| Share of Local Currency Bonds | ~33% (mainly yuan, rand) | ~₹30,000 crore |
| Strategy Target (2022–26) | 30% of financing in member currencies | – |
5. Historical Context
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NDB considered rupee bonds two years ago but delayed due to lack of approvals.
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Other multilateral agencies (e.g., IFC of World Bank) have previously issued rupee bonds, drawing strong demand.
6. Strategic Angle
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NDB’s 5-Year Plan (2022–26):
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30% financing in national currencies of BRICS members.
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Strengthen local markets.
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Investor Appeal:
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Attracts emerging market-focused investors.
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Fits global de-dollarisation trend.
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Supports rupee internationalisation.
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7. Market Conditions
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Rupee weakness: Recently hit record lows amid U.S. tariff/trade pressures.
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Investor View: Weakness not expected to significantly hinder demand.
8. Regulatory Angle
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RBI approvals still pending.
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Government involvement critical for clearance.
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NDB CFO confirms ongoing discussions but withheld issuance details.
9. Bigger Picture
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China is simultaneously promoting yuan bonds in Hong Kong.
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India liberalised investment rules for foreign funds in Indian banks.
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Collectively, BRICS members aim to strengthen local-currency bond ecosystems.
10. Outlook
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If approved, this will mark NDB’s first rupee bond issue.
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Likely to boost Indian bond market liquidity.
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Enhances India’s position in global de-dollarisation efforts.
📌 Disclaimer (The Profit India)
This article is for informational purposes only and does not constitute financial advice. Readers are advised to conduct their own research or consult a financial advisor before making investment decisions.
