MATTERS ARISING

7. Annual Funding Plan and Funding Strategy for 2024

(Ver: Note on Update on Funding Activities – 2024-BD43-DOC-017)

Overview of funding activities for 2024

NDB has the following issuance strategy for the first quarter of FY2024 based on its
established debt issuance infrastructure, expected disbursement requirements,
and prevailing geopolitical situation:

- The issuance of RMB 5-year benchmark bond with the size up to RMB
6bn under the NDB’s local currency bond program in China, which was
done in January 2024;
- Private placements in hard currencies, local currencies of NDB’s
member countries, and other currencies; and
- The issuance of USD benchmark bond under the Bank’s EMTN program
in Q1-Q2 2024.

For the year of 2024, the Bank is considering to:

- Issue 1-3 benchmark bonds under the EMTN Program in hard currencies
(such as USD, EUR) with a size of around USD 500mn – 1.5bn equivalent
and other currencies (such as AED, HKD) with tenors from 3 to 5 years;
- Private placements in hard currencies, local currencies of NDB’s
member countries and other currencies with tenors from 2 to 10 years
and pricing after swap below NDB’s USD secondary levels;
- 2-3 domestic RMB bond issuances in China with sizes from RMB 3bn to
RMB 6bn and tenors from 3 to 5 years;
- Quarterly domestic ZAR bond issuances in South Africa with an issuance
size of about ZAR 500mn-ZAR 2bn with 3 to 5 year tenors;
- INR 30-50 billion bond with a tenor of 10 to 15 years subject to the
relevant statutory and regulatory approvals in India;
- Debt instruments in loan markets, including syndicated or bilateral loans
and revolving credit facilities in hard currencies and currencies of NDB’s
member states.
The Bank will aim to raise about 30% of its total funding in local currencies and to
extend the tenor of its funding. The execution of the above will depend on the
progression of Bank’s liquidity needs, market conditions and investor demand.

In addition, the Bank plans to further bringing down its funding cost and have more
flexibility in the increasingly risky geopolitical environment through new
instruments, expansion to new markets and increased investor work.