NDB Board of Directors Approves Three Projects from Brazil, Russia and South Africa
On December 16, 2019, the Board of Directors of the New Development Bank (NDB) approved three projects aggregating to approx. USD 1 billion.
- Equity Investment in Patria Infrastructure Fund IV, L.P.
The NDB will make an investment of up to USD 100 million in the Patria Infrastructure Fund IV, L.P. in Brazil. The investment will catalyze investments in Brazil’s key infrastructure sectors such as transportation and logistics, data infrastructure, and environmental services.
- Locomotive Fleet Renewal Program
The NDB approved a loan of CHF 500 million (approx. USD 500 million) to Joint Stock Company Russian Railways for the Locomotive Fleet Renewal Program.
- Battery Energy Storage Project
The NDB will provide a loan of ZAR 6 billion (approx. USD 400 million) to Eskom Holdings SOC Ltd. (Eskom) for setting up Battery Energy Storage System comprising 360 MW of distributed battery storage sites across four provinces of South Africa. The Project is primarily aimed at meeting peak electricity demand, increasingly through renewable energy, and avoiding emissions associated with utilization of fossil fuels. NDB’s financial support to this project will be provided along with WB and AfDB.
Financing of the approved three projects by the Bank is aligned with its mandate of supporting infrastructure and sustainable development projects articulated in the NDB’s General Strategy: 2017-2021.
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).