NDB Board of Directors held its 32nd Meeting
On September 23, 2021, the Board of Directors (Board) of the New Development Bank (NDB) held its 32nd Meeting in a virtual format.
The Board welcomed the deposit of the Instrument of Accession by Bangladesh, which has become the first non-founding member of the NDB.
The Board of Directors approved a total lending envelope of USD 15.0 billion for 2021 and 2022, as informed by NDB’s updated Financial Model.
NDB’s LIBOR Transition Strategy was also adopted, and the Board noted the progress made in the preparation of the next General Strategy of the Bank.
The Management presented an update on the Bank’s strategically diversified project pipeline in its member countries, as well as on project implementation and disbursement.
The Board also approved a loan of USD 300 million to JSC “Russia Housing and Urban Development Corporation” (DOM.RF) for the financing of affordable housing across Russia.
DOM.RF Affordable Housing Program
NDB’s loan will address the quality affordable housing shortage in Russia by co-financing 1.5 million square meters of housing construction equivalent to about 35,000 apartments until 2023. This will support the efforts of the Russian Government’s national project on “Housing and Urban Environment” aimed at expanding homeownership opportunities with NDB’s loan improving living conditions for around 91,000 people.
Overall, the loan is expected to contribute to SDG 11 (Make cities and human settlements inclusive, safe, resilient and sustainable), specifically target 11.1 (Ensure access for all to adequate, safe and affordable housing and basic services).
The Program will be implemented by DOM.RF’s fully-owned subsidiary, JSC “Bank DOM.RF”, which would provide financing to developers for housing construction.
NDB was established with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.
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) and Analytical Credit Rating Agency (ACRA).