NDB Board of Directors Approves Three Projects in India and Russia with Loans Aggregating USD 825 million and Establishment of Bond Programme in South African Debt Capital Market
On 18 September 2018, the 16th Meeting of the Board of Directors (Board) of the New Development Bank was held in Shanghai. At the Meeting, the Board approved three infrastructure and sustainable development projects in India and Russia with loans aggregating USD 825 million.
The NDB will provide a loan of USD 350 million to the Government of the Republic of India for Madhya Pradesh Major District Roads Project II. The loan will be used by the Government for on-lending to the State Government of Madhya Pradesh for rehabilitating major district roads with a total length of about 2,000 km to improve connectivity of the rural interior with the national and state highway networks. The Project will improve road conditions and enhance transport capacity, which will lead to benefits of less travel time, reduced vehicles operating cost, reduced emissions, and improved road safety. The positive impacts of the Project also include promoting inclusive development of the rural communities of the State of Madhya Pradesh and stimulating regional economic development.
The NDB will also provide a loan of USD 175 million to the Government of the Republic of India for Madhya Pradesh Bridges Project. The objective of the Project is to tackle the weak links of the road network, the bridges of Madhya Pradesh State, to realize the full benefits of upgrading the state highways and major districts roads, through constructing and upgrading about 350 bridges in the State of Madhya Pradesh. The positive impacts of the project include promoting inclusive development of the rural communities of the State of Madhya Pradesh and stimulating regional economic development through improved connectivity, enhanced accessibility and increased job opportunities.
The Board approved a non-sovereign loan of USD 300 million to SIBUR Holding, PJSC for environmentally sustainable infrastructure development related to ZapSibNefteKhim project. NDB will provide financing including reimbursement of expenses for construction of utilities including water treatment facilities, transport and logistics infrastructure.
The Board approved the establishment of a Bond Programme of up to ZAR 10 billion in the South Africa Debt Capital Market.
The Board also considered a Policy on Sovereign Guaranteed Projects in Non-Member countries and agreed to submit the Policy to the Board of Governors for approval. The Board approved amendments to the Policy on Transactions without Sovereign Guarantee as well as the Board Governance Structure.
On September 17, 2018 a meeting of the Audit, Risk and Compliance Committee (“ARC”) of the Board of Directors took place. The ARC considered the Quarterly Audited Financial Statements for the period ended June 30, 2018 as well as the Quarterly Unaudited Financial Statement for the Project Preparation Fund for the period ended June 30, 2018. Risk Reports for the period ended June 20, 2018 were also considered as well as the Internal Audit Report and Compliance Update.
A meeting of the Budget, Human Resources and Compensation Committee (“BHRC”) of the Board of Directors also took place on 17 September 2018. The BHRC considered the Budget Utilisation Report, Revised Organisation Chart and was provided an update on the recruitment process and compensation related matters.
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. In August 2018, the NDB received AA+ long-term issuer credit ratings from S&P and Fitch.