NDB Board of Directors held its 34th Meeting, approved two projects
On March 22, 2022, the Board of Directors (Board) of the New Development Bank (NDB) held its 34th Meeting in a virtual format.
The Board approved the following two project proposals:
FONPLATA Sustainable Infrastructure Project
The Board approved a loan of USD 50 million to Fondo Financiero para el Desarrollo de la Cuenca del Plata (FONPLATA, Financial Fund for the Development of the River Plate Basin), an international organization formed by Argentina, Bolivia, Brazil, Paraguay and Uruguay. The loan proceeds will be on-lent by FONPLATA to large and medium-sized municipalities and federal states in Brazil for financing multi-sector projects focusing on improving local infrastructure, such as water and sanitation, social housing, transport, tourism enabling and urban infrastructure. The FONPLATA Sustainable Infrastructure Project will contribute to Brazil’s efforts to achieve the Sustainable Development Goals (SDGs), in particular, SDG 9: build resilient infrastructure, promote sustainable industrialization, and foster innovation.
Desenvolve SP Sustainable Infrastructure Project
The Board approved a loan of USD 90 million to Desenvolve São Paulo (DSP) for on-lending to sustainable infrastructure sub-borrowers in the public and private sectors in the state of São Paulo. By partnering with DSP, the NDB will be able to reach smaller municipalities and private sector companies that are currently not eligible to access funding from multilateral development banks, supporting post-pandemic sustainable economic recovery. NDB loan proceeds will be used for on-lending to investments in key local infrastructure such as sustainable urban development, clean energy and irrigation, water resource management and sanitation.
The Board was briefed on the project implementation and disbursements and updated on the project pipeline. The Board approved the proposed amendments to the General Conditions for Sovereign Loans and Loans with Sovereign Guarantee and reviewed the loans to sub-national governments without sovereign guarantee. The Board provided guidance on the utilization of the Project Preparation Fund. The Board took note of the 2021 Annual Report on Multi-tranche Financing Facility.
The Board approved proposed amendments to the following policies: Accounting Policy and Measurement, Provisioning and Write-Off Policy, Debt Instrument Financing Policy and Internal Audit Policy. The Board also approved the Bank’s Operational Procedures for Private Placements.
The Board also received updates on funding programmes and LIBOR transition, and took note of the 2021 Treasury Investment Portfolio Annual Report.
The Board was updated of the membership expansion and provided guidance on the Bank’s General Strategy: 2022-2026.
The Board agreed that its next meeting be held on May 18, 2022, followed by the 7th Annual Meeting of the Board of Governors scheduled to take place on May 19, 2022.
The 22nd Meeting of the Audit, Risk and Compliance Committee and the 18th Meeting of the Budget, Human Resources and Compensation Committee took place virtually on March 9, 2022 and March 10, 2022 respectively.
New Development Bank 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 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. 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).