SHANGHAI -- The New Development Bank (NDB) has issued 7 billion yuan (about $1.02 billion) worth of Panda bonds in China's interbank bond market, the bank announced on Thursday.

Panda bonds are yuan-denominated debt securities issued by overseas entities in China, a vital financing channel for international institutions.

The latest issuance, including a three-year tranche of 6 billion yuan and a five-year tranche of 1 billion yuan, made NDB the first Sovereigns, Supranationals and Agencies (SSA) issuer to adopt a claw-back structure for Panda bonds, a move that allows for the reallocation of bonds between tranches to optimize both pricing and issuance size.

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The transaction deepens the bank's presence in China's interbank Panda bond market with a cumulative issuance of 87.5 billion yuan, and further strengthens its role as an innovative and regular issuer, said Monale Ratsoma, NDB vice president and chief financial officer.

Headquartered in Shanghai, the NDB was established by Brazil, Russia, India, China, and South Africa (BRICS) to mobilize resources for infrastructure and sustainable development projects in BRICS member nations, and in other emerging market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.