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The BRICS make a big hit!

Fri 09 Feb 2024 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed Investissement

If the BRICS have launched their New Development Bank (NDB), it is with a goal in mind. That goal is to finance public and private projects following their de-dollarization plan. This bank has taken its mission to heart and has recently carried out a significant bond issuance from both an economic and geostrategic standpoint.

Le logo de la banque des BRICS et en arrière-plan, les drapeaux des pays membres de l'alliance

6 billion yuan of bonds beneficial for the BRICS union

The economic cooperation among BRICS member countries remains an absolute priority. This can be inferred from recent significant developments marking a new era of collaboration and expansion of the group of states.

For example, the admission of Saudi Arabia to the BRICS a few months ago, underscores this dynamic. This obviously does not fail to arouse the interest of other states. This, by paving the way for further memberships as the alliance has indeed announced.

But at the heart of this sustained cooperation lies the New Development Bank (NDB). This “BRICS Bank,” recently achieved a masterstroke by issuing 6 billion yuan, equivalent to about 845 million US dollars.

This bond issuance represents a historic milestone in the history of the NDB. Indeed, it reflects its commitment to promoting economic development among member countries, in line with the overall plan to move away from the dollar.

The NDB, the BRICS bank, issues 6 billion yuan in bonds to finance ecological projects in China and beyond

Bonds with global and environmental impacts?

According to analysts, these bonds often referred to as “panda bonds,” aim primarily to finance environmental projects in China. The ecological orientation of these investments highlights the growing importance of environmental protection and sustainable development in the region.

However, the impact of the panda bonds issued by the NDB extends far beyond the Chinese borders and even those of BRICS. This is because they arouse growing interest in other regions of the world, particularly in Africa.

In Egypt, for instance, the bond issuance worth 480 million dollars last October reflects the growing appeal for these innovative financial instruments. An initiative that moreover received active support from the African Development Bank (AfDB), illustrating the potential for collaboration between regions in the financial realm.

Overall, the financial expansion of BRICS and the growing interest in these types of sustainable investments demonstrate the evolution of global economic priorities. By supporting ecological projects and promoting international cooperation, BRICS express a particular will. That is to play a key role in building an economically and ecologically sustainable future. The possibility of a community currency with a crypto option might support this vision.

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Luc Jose A. avatar
Luc Jose A.

Graduated from Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.