BRICS Bank approved the issue of five-year Eurobonds in RMB

Almaty. April 15. Silkroadnews – As a result of the BRICS New Development Bank board of governors meeting in Washington, the Russian finance minister Anton Siluanov reported, the board approved the issue of five-year bonds denominated in yuan in the Chinese market in 2016, “Kommersant” informs.

“It was decided that a five-year loans of the New Bank will be issued in RMB. Apart from fact that the first billion-dollar capital has been generated, the bank will raise the funds in the Chinese market and enter the international markets as soon as gets the international rating,” the minister said.

It was also reported that the board of governors approved the first four investment projects, they are all infrastructural and focus on the “green” energy development.

“Yesterday these projects got approval by the Bank’s Board of Directors, today they have been approved by the Bank’s board of governors,” A. Siluanov said.

Previously it was reported that the president of the BRICS New Development Bank (NDB) Kundapur Kamath and the Chinese Foreign Minister Wang Yi signed an agreement to headquarter the bank in Shanghai. Kundapur Kamath and Shanghai Mayor Yang Xiong signed a memorandum of understanding with the municipality on the terms of the NDB’s accommodation.

Earlier, two rating agencies – Standard&Poor’s (S&P) and Moody’s – downgraded their outlook for China referring to projected deterioration in the fiscal situation and risks of the reforms slower implementation. The level of China’s global debt remains low by international standards, though the same cannot be said about the corporate sector’s debt. Under these conditions, the economy’s support through the excessive lending can carry more risks than benefits, S&P warned.