As the lender faces pressure to raise and lend more money in local currencies, the development bank established by the so-called BRICS countries is to issue its first Indian rupee bond by October, according to the chief operating officer of the organization.
Vladimir Kazbekov stated during a press conference in advance of the BRICS Summit in Johannesburg on August 22–24 that the New Development Bank (NDB) could examine local currency issuance in members Brazil, Russia, and United Arab Emirates. The NDB issued its first rand bond in South Africa last week.
The NDB, established in 2015, is the BRICS nations of Brazil, Russia, India, China, and South Africa’s (BRICS) most tangible accomplishment in their attempt to make the group a counterweight to the west. However, sanctions against Russia have made its already sluggish lending pace even worse.
By October in India, we plan to access the rupee market, according to Kazbekov.
“Now that we’re thinking seriously about it, we’re going to use the currency of one member country to fund initiatives in another member country. Consider a project in South Africa that is to be funded in CNY rather than USD, the man stated.
A target size for the Indian rupee bond program, about which Reuters had previously reported that it was in the process of being set up, was not provided by Kazbekov.
Leslie Maasdorp, the bank’s chief financial officer, said at the time that the bank aimed to expand local currency loans from roughly 22% to 30% by 2026, the majority of which has so far been in Chinese yuan, but that there were limits to de-dollarization.
According to Kazbekov, the NDB is also prepared to fulfill a promise made two years ago to offer $3 billion in financing for South Africa’s “Just Transition” away from primarily coal-fired power and toward renewable sources.