You are here: Home » PTI Stories » National » News
Business Standard

NDB set to tap rupee bonds to raise funds; issue next year

Press Trust of India  |  Aguada (Goa) 

The BRICS group-promoted New Development Bank is looking to raise funds by issuing rupee bonds to domestic investors to minimise currency risks in supporting long gestation infrastructure projects locally, a senior official said here today.

"We hope to issue, perhaps by the first quarter of 2017, a bond denominated in the rupee," NDB vice-president and chief risk officer Paulo Nogueira Batista Jr. Told PTI on the sidelines of the BRICS Economic Forum here.



Without disclosing the amount the bank is targeting to mop up, he said the long-term infra loans which the NDB gives, have inherent currency risks and raising money locally will not require any hedging.

Deploying internationally raised funds can lead to a spike in the cost of project in case of currency volatilities, he said.

Economic affairs secretary Shaktikanta Das said: "They're (NDB) looking at the possibility of floating a rupee bond in India. They're already in discussion with us and the Reserve Bank. That's one instrument of hedging the currency risk."

The Asian Development Bank, he said, has already established the efficacy of such an option by raising money at a competitive coupon of under 6.5 per cent.

Set up last year, the Shanghai-headquartered NDB has already done a yuan issue in China to support its lending operations there.

Batista said the NDB officers have already held multiple meetings on this with Indian officials.

NDB, headed by ex-chief KV Kamath, has so far committed USD 911 million in various projects, including one clean energy project in the country.

Batista said it is targeting to deploy another USD 1.5 billion next year across all the five member countries -- Brazil, Russia, India, China and South Africa.

The forum is being held ahead of the 2-day BRICS Summit to be held here from tomorrow.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

NDB set to tap rupee bonds to raise funds; issue next year

The BRICS group-promoted New Development Bank is looking to raise funds by issuing rupee bonds to domestic investors to minimise currency risks in supporting long gestation infrastructure projects locally, a senior official said here today. "We hope to issue, perhaps by the first quarter of 2017, a bond denominated in the rupee," NDB vice-president and chief risk officer Paulo Nogueira Batista Jr. Told PTI on the sidelines of the BRICS Economic Forum here. Without disclosing the amount the bank is targeting to mop up, he said the long-term infra loans which the NDB gives, have inherent currency risks and raising money locally will not require any hedging. Deploying internationally raised funds can lead to a spike in the cost of project in case of currency volatilities, he said. Economic affairs secretary Shaktikanta Das said: "They're (NDB) looking at the possibility of floating a rupee bond in India. They're already in discussion with us and the Reserve Bank. That's one ... The BRICS group-promoted New Development Bank is looking to raise funds by issuing rupee bonds to domestic investors to minimise currency risks in supporting long gestation infrastructure projects locally, a senior official said here today.

"We hope to issue, perhaps by the first quarter of 2017, a bond denominated in the rupee," NDB vice-president and chief risk officer Paulo Nogueira Batista Jr. Told PTI on the sidelines of the BRICS Economic Forum here.

Without disclosing the amount the bank is targeting to mop up, he said the long-term infra loans which the NDB gives, have inherent currency risks and raising money locally will not require any hedging.

Deploying internationally raised funds can lead to a spike in the cost of project in case of currency volatilities, he said.

Economic affairs secretary Shaktikanta Das said: "They're (NDB) looking at the possibility of floating a rupee bond in India. They're already in discussion with us and the Reserve Bank. That's one instrument of hedging the currency risk."

The Asian Development Bank, he said, has already established the efficacy of such an option by raising money at a competitive coupon of under 6.5 per cent.

Set up last year, the Shanghai-headquartered NDB has already done a yuan issue in China to support its lending operations there.

Batista said the NDB officers have already held multiple meetings on this with Indian officials.

NDB, headed by ex-chief KV Kamath, has so far committed USD 911 million in various projects, including one clean energy project in the country.

Batista said it is targeting to deploy another USD 1.5 billion next year across all the five member countries -- Brazil, Russia, India, China and South Africa.

The forum is being held ahead of the 2-day BRICS Summit to be held here from tomorrow.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

NDB set to tap rupee bonds to raise funds; issue next year

The BRICS group-promoted New Development Bank is looking to raise funds by issuing rupee bonds to domestic investors to minimise currency risks in supporting long gestation infrastructure projects locally, a senior official said here today.

"We hope to issue, perhaps by the first quarter of 2017, a bond denominated in the rupee," NDB vice-president and chief risk officer Paulo Nogueira Batista Jr. Told PTI on the sidelines of the BRICS Economic Forum here.

Without disclosing the amount the bank is targeting to mop up, he said the long-term infra loans which the NDB gives, have inherent currency risks and raising money locally will not require any hedging.

Deploying internationally raised funds can lead to a spike in the cost of project in case of currency volatilities, he said.

Economic affairs secretary Shaktikanta Das said: "They're (NDB) looking at the possibility of floating a rupee bond in India. They're already in discussion with us and the Reserve Bank. That's one instrument of hedging the currency risk."

The Asian Development Bank, he said, has already established the efficacy of such an option by raising money at a competitive coupon of under 6.5 per cent.

Set up last year, the Shanghai-headquartered NDB has already done a yuan issue in China to support its lending operations there.

Batista said the NDB officers have already held multiple meetings on this with Indian officials.

NDB, headed by ex-chief KV Kamath, has so far committed USD 911 million in various projects, including one clean energy project in the country.

Batista said it is targeting to deploy another USD 1.5 billion next year across all the five member countries -- Brazil, Russia, India, China and South Africa.

The forum is being held ahead of the 2-day BRICS Summit to be held here from tomorrow.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard