BRICS-backed New Development Bank plans to issue its first rupee bond in India by March 2026

The New Development Bank, backed by BRICS countries, is working toward its first Indian rupee bond sale in the domestic market by March 2026, according to Reuters.

The move is part of a growing push by the Brazil, Russia, India, China, and South Africa-founded lender to boost fundraising in local currencies. Discussions with the Reserve Bank of India are almost finalized, but the bank still needs approvals before going ahead with the deal.

If cleared, the New Development Bank (NDB) will raise between $400 million and $500 million in its initial tranche using three- to five-year bonds. The plan comes as India and China both try to push their currencies beyond their borders, while investors hunt for alternatives outside traditional Western markets.

In the same week, China introduced new policies to help develop the yuan bond market in Hong Kong. On India’s side, the RBI has announced changes that make it easier for foreign funds to be deployed from Indian bank accounts.

So far, the NDB has raised capital using the yuan and rand, but it has never issued bonds in rupees, despite earlier attempts. Back in 2023, the bank had plans to enter the Indian debt market, but Reuters said the initiative stalled due to a lack of approval from both the government and the central bank. Now, the same proposal is back on the table with more momentum.

Regulators delay bond as NDB targets rupee

“NDB is working with the government of India and regulators to explore raising funds in the local markets to provide local currency finance for Indian projects,” said Monale Ratsoma, the bank’s Chief Financial Officer, when asked about the current plan. Monale refused to offer any additional details on timing or scale. Two other people familiar with the conversations confirmed that the plan is still waiting for RBI clearance, and it’s unclear whether any approvals have been granted by the Indian government.

An email sent to a government spokesperson wasn’t returned. The RBI, when contacted, also gave no response. Meanwhile, there’s no word on which banks, if any, have been brought in to manage the issue.

The bond sale ties directly into the bank’s five-year strategy running from 2022 to 2026. That document outlines a goal to issue 30% of all financing in the local currencies of its member countries.

Since its creation in 2015, the bank has raised around $11 billion, with about a third of that in non-dollar currencies like the yuan and rand. Adding the rupee into that mix would expand the bank’s local currency base and line up with India’s own interest in making the rupee more global.

Investors expect strong demand despite weak rupee

Analysts say a rupee-denominated bond by the BRICS bank will probably attract attention from investors who are trying to stay away from U.S.-linked assets.

Speaking on the matter, Vivek Rajpal, Asia strategist at JB Drax Honore, said, “The issue will draw interest from a segment of investors, particularly those focused on emerging markets and interested in the de-dollarisation trend.”

Vivek also said the bond could help in India’s efforts to internationalize the rupee, something the government has quietly been pursuing. Despite the rupee falling to record lows this year, largely due to trade and tariff pressure from the Trump administration, he said this won’t scare off investors.

“The recent weakness in India’s rupee, which has fallen to a record low amid pressures from U.S. trade and tariff policies, will not be a big hinderance to investors,” he explained.

Multilateral lenders like the International Finance Corporation, part of the World Bank, have already tested both offshore and onshore rupee markets with success.

A person close to the deal allegedly said issuing in India’s local market would not only deepen the bond market’s liquidity, but also help with price discovery, since the onshore market has more depth and better access to local investors.

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