NDB Set to Launch ₹-Denominated Bonds Worth $400–500 Million in Domestic Market by March

The BRICS-backed New Development Bank (NDB) is preparing to issue Indian-rupee denominated bonds in the domestic market, with the first tranche expected to raise between $400 million and $500 million, according to sources familiar with the matter. The issuance is slated for completion before the end of March 2026 and marks a strategic move to deepen NDB’s local currency funding footprint in India.

Key highlights:

The rupee bonds will be issued under NDB’s broader plan to diversify its funding base across BRICS nations and reduce reliance on hard currency borrowings.

This will be NDB’s first major local currency issuance in India, aligning with its mandate to support sustainable infrastructure and development projects in member countries.

The proceeds are expected to be deployed toward financing green and social infrastructure projects, with a focus on transport, energy, and urban development.

The issuance will also contribute to the development of India’s corporate bond market and offer institutional investors access to high-grade multilateral debt.

Strategic implications:

The move reflects growing confidence in India’s debt market and aligns with the Reserve Bank of India’s push for broader participation in rupee-denominated securities.

It also signals NDB’s intent to localize funding in member countries, enhancing currency stability and reducing exposure to global rate volatility.

Sources: New Development Bank, Reserve Bank of India, NSDL Bond Info.