NDB Board of Directors Approves Project in Russia, Bringing Bank’s Lending Approvals to USD 15.1 Billion
On December 24, 2019, the Board of Directors (BoD) of the New Development Bank (NDB) approved one project in Russia with a loan equivalent to USD 500 million, bringing the total approvals of the NDB’s lending to approx. USD 15.1 billion.
Development of Educational Infrastructure for Highly Skilled Workforce Project
The NDB will provide a loan equivalent to USD 500 million to the Russian Federation to establish Advanced Engineering Schools (AES’s) at about 30 higher education institutions in Russia to prepare graduates specializing in engineering. Establishment of the AES’s involves development of new or redesign of existing education programs tailor-made for concrete industry partners. The Project will contribute to labor productivity increase in the real sector of the Russia’s economy. The Project is aligned with NDB’s General Strategy: 2017-2021, where supporting the development of social infrastructure and services is envisaged under one of the key areas of the Bank’s operations.
Lending Portfolio of NDB Reaches USD 15.1 Billion
The year 2019 is the fourth full year of the NDB’s operation and it was marked by the approval of 22 projects from all member countries of the Bank aggregating to approx. USD 7.1 billion, including the first equity investment by the NDB in Brazil of USD 100 million. With the approval of Development of Educational Infrastructure for Highly Skilled Workforce Project, the total approvals of the NDB’s lending have reached approx. USD 15.1 billion.
The Bank’s 2019 lending portfolio is well-balanced across the sectors of transportation, water, clean and renewable energy, environment, education and others. In 2019, the Bank expanded its non-sovereign operations, with 6 non-sovereign projects approved by the BoD. At the same time, the NDB embraced the concept of impact investment, bringing a range of positive and broad-based benefits to its member countries and their people. This is a clear demonstration of the NDB’s strong commitment to its mandate of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.
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).