Founding Members Contribute USD 750 Million Towards First Installment of Paid in Capital
The New Development Bank (NDB), which was established in July 2015, is pleased to inform of the receipt of the first installment of the paid-in capital of USD 750 million from its five founding member countries (Brazil, Russia, India, China and South Africa), in accordance with the Articles of Agreement (AOA).
The capital that shareholders contribute comes in two forms namely paid-in capital, which requires the payment of cash to the bank, and callable capital which is capital that shareholders agree to provide when necessary. Paid-in capital forms the core element of a multilateral development bank’s shareholders equity. The total paid-in capital during the first phase of the NDB’s incorporation, of USD 10 billion would be paid over seven installments. The NDB has callable capital commitment of USD 40 billion from its five member countries.
Mr. K.V. Kamath, President of the NDB called this a momentous occasion and commented that the contribution of paid-in capital from the founding members reinforces the commitment of the BRICS Countries in operationalizing the activities of the Bank.