The New Development Bank announced on Tuesday that it will issue 3 billion yuan ($448.4 million) of renminbi-denominated green financial bonds.

It will be the first green bonds issued by a multilateral development bank in China's interbank bond market.

The NDB was founded by the BRICS countries: Brazil, Russia, India, China and South Africa.

The price of the five-year bond will be set on issuance day and is estimated to yield a return between 2.8 percent and 3.6 percent, according to the NDB.

Researchers said that issuing yuan-denominated green bonds may become popular among investors.

"The estimated income may be quite appealing to fixed-income investors in the interbank market as lenders may secure low cost of capital. Brokerages with a specific focus on green energy may allocate some capital to the category," said Lin Hua, a fixed-income specialist with Xinhe Asset Management.

The bank saw significant investor interest in the bond in a meeting on Tuesday. More than 40 international and domestic investors in attendance showed their confidence in the bank's credit story.

K V Kamath, president of the bank, said issuance of the bonds is a significant milestone for the NDB and the green bond would help fulfill the sustainable development mission of the bank.

"Furthermore, the NDB funding strategy will aim to ensure that the bank contributes to the development of local capital markets in our member countries," said Kamath.

The bank has secured AAA rating from China Chengxin Credit Rating Group Co Ltd and China Lianhe Credit Rating Co Ltd, according to Leslie Maasdorp, CFO of the bank. The NDB will actively promote the development of green finance in its future fundraising activities.