Brics bank taps its strong credit rating to launch rand bonds
The New Development Bank (NDB) — popularly known as the Brics bank — will make use of its strong credit rating to launch a rand bond programme which will enable it to provide funding for SA public entities. This could then be on-lent at a competitive rate, its Africa regional head Monale Ratsoma said in an interview last week. The bank has also extended a $300m line of credit to the Development Bank of Southern Africa (DBSA) in what will be the third loan arrangement with an SA public entity. The Brics bank was established in 2013 with R2bn paid in capital from each of the five member countries to mobilise resources for infrastructure and development, as an alternative to the IMF and World Bank. In August it was awarded the second-highest credit rating — AA+ — by agencies Fitch and S&P. It has pledged that its first loans will be to member states for renewable energy projects.
The loan to the DBSA, which will be drawn on when necessary, will be used to lend-on "for renewable e...
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