BRICS-Backed New Development Bank Plans First Rupee Bond Issuance by 2026

The New Development Bank (NDB), established by BRICS nations, is finalizing plans to issue its inaugural rupee-denominated bond in India by March 2026. The MOVE signals a strategic pivot toward local-currency fundraising, with the bank targeting $400-$500 million in three- to five-year bonds pending regulatory approvals.

Discussions with India’s central bank are nearing completion, though earlier attempts in 2023 stalled due to clearance delays. The initiative aligns with broader efforts by India and China to internationalize their currencies, coinciding with China’s recent policies to bolster yuan bonds in Hong Kong and India’s relaxed rules for foreign fund deployment.

While the NDB has previously raised capital in yuan and rand, rupee bonds represent uncharted territory. Success could accelerate the de-dollarization trend as investors increasingly seek alternatives to Western-dominated markets.