New Development Bank has set the indicative price range at 2.37%–2.97% for a Rmb5bn (US$705m) three-year Panda bond offering.

Settlement will be on April 3. Offshore institutional investors can also subscribe through Bond Connect.

The deal is the first coronavirus-themed Panda bond from a multilateral financial institution.

The bonds will be issued off a Rmb10bn quota that the multilateral development bank has registered with regulators.

NDB is rated AA+ by both S&P and Fitch and the proposed bonds are unrated.

It is planning to provide a Rmb7bn emergency assistance programme loan to the Chinese provinces of Hubei, Guangdong and Henan to finance public health expenditure on the coronavirus epidemic.

Industrial and Commercial Bank of China is the lead underwriter and bookrunner on the deal. Bank of China, Agricultural Bank of China and China Construction Bank are joint underwriters.

Headquartered in Shanghai, NDB was established by Brazil, Russia, India, China and South Africa to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.

IFR