The BRICS-backed New Development Bank (NDB) plans to issue its inaugural Indian rupee-denominated bond by the end of March 2026. This move is expected to raise between $400 million and $500 million through bonds with a 3-5 year maturity. The bank has already raised funds in Chinese yuan and South African rand but is now in advanced talks with the Reserve Bank of India (RBI) for the debut issuance in India’s domestic market.
As the Indian government and global investors focus on diversifying their portfolios beyond traditional Western markets, this bond issuance aligns with growing efforts by China and India to internationalize their respective currencies. Recent initiatives from both countries have emphasized strengthening their currencies’ global presence. China has already launched measures to encourage yuan bond development in Hong Kong, while India has taken steps to expand investment options for foreign funds in Indian bank accounts.
Sources indicate that while NDB has not yet appointed bankers for the issuance, the final approvals from the RBI are still pending. The initiative is set to strengthen local currency financing for Indian projects and increase liquidity in the local bond market, which could benefit investors keen on emerging markets.
Vivek Rajpal, an Asia strategist at JB Drax Honore, noted that the issuance would attract investors focused on de-dollarization trends and potentially boost the international profile of the Indian rupee.
The NDB, established by Brazil, Russia, India, China, and South Africa in 2015, aims to raise a significant portion of its bond issues in local currencies, with this rupee-denominated bond marking a critical step in its long-term strategy.
The Indian rupee has recently faced challenges, falling to a record low amid geopolitical tensions and trade tariffs. However, experts believe that the currency’s weakness will not significantly deter potential investors looking to take advantage of the growing trend of currency diversification.
