Published by Global Banking and Finance Review
Posted on September 26, 2025
4 min readLast updated: January 21, 2026
NDB plans to issue its first Indian rupee bond by March 2026, aiming to raise $400-$500 million, pending regulatory approval, supporting rupee internationalization.
By Gopika Gopakumar
MUMBAI (Reuters) -The BRICS countries-backed New Development Bank (NDB) plans to issue its first Indian rupee-denominated bond in the domestic market before end-March 2026, three sources familiar with the matter said.
NDB, which has previously raised funds in Chinese yuan and South African rand, is in advanced stages of discussions with the Indian central bank for its debut rupee issuance, the sources said.
It will look to raise between $400 million and $500 million through 3-5 year bonds in the first tranche, one of the sources said.
The plan comes at a time when China and India are both pushing for greater international acceptance of their currencies and as investors are seeking to diversify their assets beyond developed markets.
Earlier this week, China rolled out measures to support the development of yuan bonds in Hong Kong and, over the past few months, the Indian central bank has announced steps to allow wider investment options for foreign funds held in Indian bank accounts.
Details of the bond issuance have not been previously reported. It could not be ascertained if NDB has appointed bankers to the issue.
A spokesperson for the Reserve Bank of India did not respond to a request for comment. The sources declined to be identified as they are not authorised to speak to the media.
"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," Monale Ratsoma, the bank's Chief Financial Officer, said in response to Reuters queries. He declined to share details on the issuance.
Final approvals for the issue are pending with the Reserve Bank of India, two other sources familiar with the conversations said. It is not clear if all government approvals have been received.
An email sent to a government spokesperson was not immediately answered.
NDB had been planning to tap the Indian rupee bond market two years ago but two of the three sources said issuance was delayed as approvals from the government and central bank did not materialise then.
FIVE-YEAR STRATEGY
Multilateral agencies such as the World Bank's International Finance Corporation have previously issued rupee-denominated bonds in the overseas and local markets, drawing strong investor interest.
Established in 2015 by Brazil, Russia, India, China, and South Africa, the NDB has raised about a third of its $11 billion bond issues in local currencies, primarily the yuan and South African rand, with plans to expand into other member currencies.
NDB has targeted to provide 30% of its total financing commitments over the five-year strategy period in national currencies of member countries, the bank stated in its strategy report for 2022-26.
Issuing the bonds in the Indian market will add to the liquidity and diversity of the local bond market, said one of the sources quoted above. The onshore market has more depth and will help in better price discovery, this person added.
"The issue will draw interest from a segment of investors particularly those focused on emerging markets and interested in the de-dollarisation trend, said Vivek Rajpal, Asia strategist at investment advisory firm JB Drax Honore, adding that it can also be seen as a step in the direction of rupee internationalisation.
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, Rajpal said.
(Reporting by Gopika Gopakumar; Editing by Muralikumar Anantharaman)
The NDB aims to raise funds in the local currency to finance Indian projects and enhance local currency finance.
NDB plans to raise between $400 million and $500 million through 3-5 year bonds in the first tranche.
NDB's plans to tap the Indian rupee bond market were delayed due to pending approvals from the government and central bank.
Issuing the bonds in the Indian market will add to the liquidity and diversity of the local bond market.
The issue is expected to attract investors focused on emerging markets and interested in the de-dollarisation trend.
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