The new Development Bank, established by the BRICS countries, plans to place Indian rupee-denominated bonds for the first time by the end of March 2026. This was reported by the Reuters news agency, citing informed sources. Previously, the bank issued debt instruments in Chinese yuan and South African rand, but now the focus is shifting towards India— one of the key economies of the association.
According to sources, discussions with the Central Bank of India are in the final stages. The estimated volume of the issue is from 400 to 500 million dollars in equivalent. The bonds will have a maturity of three to five years.
NDB Finance Director Monale Ratsoma confirmed that negotiations are underway with Indian authorities and regulators on the possibility of raising funds from the domestic market to finance local infrastructure and technology projects. However, he did not disclose more detailed information.
It is worth noting that the NBR first announced plans to issue bonds in rupees back in 2023. However, at that time, the Indian regulator did not give permission to enter the market. Now the situation has changed: India's desire to strengthen the international status of its currency coincides with the interests of the bank, which is increasing its presence in the local economies of the participating countries.
The New Development Bank, headquartered in Shanghai, was established in 2014 by the BRICS countries - Brazil, Russia, India, China and South Africa. Over time, other countries joined the association, including Egypt, the United Arab Emirates, Bangladesh and Uzbekistan. The authorized capital of the NBR is $100 billion.
The context of the situation is important: more and more states and investors are seeking to diversify their assets and reduce dependence on the dollar zone. This creates the prerequisites for emerging economies to enter local capital markets. In India, for example, there is a growing number of reforms aimed at facilitating foreign investors' access to financial instruments denominated in rupees.
At the same time, China is also stepping up measures to internationalize the yuan. It was recently reported that the People's Bank of China will support the issuance of yuan bonds in Hong Kong.
If the NBR manages to implement the placement in rupees, this will be an important step towards strengthening the role of national currencies within the BRICS bloc, as well as an additional incentive for localizing financial projects in India.
