(Bloomberg) -- The New Development Bank plans to issue South African bonds in the third quarter to raise 4.4 billion rand ($310 million) for two infrastructure projects in the continent's most-industrialized economy.
Standard Bank Group Ltd. and Absa Group Ltd. have been picked to arrange the debt sale, Leslie Maasdorp, the NDB's chief financial officer, told reporters in Cape Town on Monday. The funding is earmarked for Trans-Caledon Tunnel Authority, the state-owned firm responsible for building dams and tunnels to supply water, and the Industrial Development Corp., which finances development projects.
The lender -- backed by Brazil, Russia, India, China and South Africa and started in 2015 to support infrastructure projects and sustainable development initiatives -- expects to target local investors with the bond issuance, Maasdorp said. NDB might raise more funds in future to back a total of 10 billion rand in projects earmarked for South Africa, he said in an interview.
Click here to read more about NDB's plans to finance Eskom
Debt sales in Brazil and India will also take place later this year, Maasdorp said.
Separately, NBD President Kundapur Kamath said the institution won't extend loans to Zimbabwe because it is not a member nation.
To contact the reporter on this story: Paul Vecchiatto in Cape Town at pvecchiatto@bloomberg.net
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Vernon Wessels, Hilton Shone
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