NDB and BNDES sign a new Memorandum of Understanding
On 13 November 2019, the New Development Bank (NDB) and the Brazilian Development Bank (Banco Nacional de Desenvolvimento Economico e Social – BNDES) signed a new Memorandum of Understanding to continue and enhance the cooperation between the two institutions. The Memorandum was signed by Mr. K.V. Kamath, the President of NDB, and Mr. Gustavo Montezano, the President of BNDES, following the opening of the seminar on NDB and Brazil: Strategic Partnership for Sustainable Development, which took place in Brasília, Brazil.
As a continuation of the first Memorandum of Understanding between NDB and BNDES signed in 2015, the new Memorandum aims to expand the cooperation framework between the two institutions for joint initiatives across a wider range of areas of mutual interest.
Under the new Memorandum, the parties are envisaged to exchange knowledge on topics related to infrastructure and sustainable development; explore opportunities to co-design mechanisms for infrastructure investments; perform joint research on topic of mutual interest; and provide mutual training and capacity building through collaboration and staff exchange programs.
Mr. K.V. Kamath pointed out that Brazil offers great investment opportunities, and the strategic partnership between NDB and BNDES plays an important role in translating these opportunities into concrete projects, as well as catalysing additional investment from other BRICS countries to Brazil.
Mr. Gustavo Montezano said that BNDES is willing to work jointly with NDB to address common challenges faced by development banks across BRICS countries. “Your success in Brazil is our success. Our role here is to open the doors of Brazil to investors who come here with purpose and, obviously, with financial return. We want to be this facilitator” said Mr. Montezano.
The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR).