NDB Signs First Loan Agreement in Brazil for Financing Renewable Energy Projects
The New Development Bank (NDB) and BNDES – The Brazilian Development Bank signed today a loan agreement with the amount of USD 300 mln aiming at developing the renewable energy sector in the Federative Republic of Brazil. The Loan Agreement was signed by Mr. Xian Zhu, Vice President, Chief Operations Officer of the NDB, and Mr. Marcelo Siqueira, BNDES Legal Director. The signing ceremony was witnessed by Mr. Dyogo Oliveira, Minister of Planning, Development and Management of Brazil and Mr. K.V.Kamath, the President of the NDB.
The Loan is called upon to facilitate sustainable development of energy infrastructure of Brazil through investments in at least 5 renewable energy and associated transmission projects. A part of the Loan has also been earmarked for the purpose of on-lending by BNDES to projects by way of debentures. This would assist BNDES in its efforts to develop an alternative financing source for renewable energy projects and facilitate in further development of secondary market for infrastructure financial instruments.
It is estimated that the loan will enable investments that will add around 600 MW to the Brazilian power generation capacity.
“Today’s signing is another milestone in the history of the Bank. In collaboration with our member countries and development partners, the NDB is supporting clean energy projects. These projects fill critical infrastructure gaps and contribute to sustainable development. This partnership with BNDES will also, I believe, support Brazil’s sustainable development,” said Mr. K.V. Kamath.
The New Development Bank was established with an objective of financing infrastructure and sustainable development projects in its member countries. The Bank will support the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players.