NDB successfully concludes participation in 11th BRICS Summit in Brasilia, Brazil
On November 14, 2019, the New Development Bank successfully concluded its participation in the 11th BRICS Summit in Brasilia, Brazil.
Mr. K.V. Kamath, President of the New Development Bank reported to the Leaders of Brazil, Russia, India, China and South Africa during the 11th BRICS Summit in Brasilia, Brazil.
“Thus far, the NDB has approved 46 projects for USD 12.8 billion in our member countries. By the end of this year, we expect the approvals to reach about USD 15 billion. In 2020, we are targeting approvals of USD 8-10 billion,” said Mr. K.V. Kamath.
“Going forward, the Bank is capable of sustaining between USD 8-10 billion of annual lending. With the initial USD 10 billion of capital that has been provided to it by the founding members, by 2027, the Bank can achieve a total asset book of about USD 50 billion,” projected the NDB President.
On the sidelines of the Summit, the NDB and the Government of Russia signed the Agreement on the Hosting of the New Development Bank Eurasian Regional Centre (ERC) in the Russian Federation.
“The Bank’s Africa Regional Center in Johannesburg has proved that on-the-ground presence makes a big difference to our work. Our Brazil office is already staffed and ready to open and we await completion of necessary formalities. Preparations for our office in Moscow are at an advanced stage and we will open this office early next year. We will follow that up with our Delhi office in the first half of 2020,” said Mr. K.V. Kamath.
BRICS Leaders on NDB
In the Brasilia Declaration signed on November 14, 2019, the BRICS leaders noted with appreciation the role of the New Development Bank (NDB) in infrastructure and sustainable development financing. “We stress the need for enhanced efforts to build a strong, balanced and high-quality portfolio of projects. We also note with pride the 5th anniversary of the signing of the NDB’s Articles of Agreement in Fortaleza, Brazil and welcome the upcoming mid-term review of NDB’s General Strategy,” stated the leaders.
The heads of BRICS states welcomed the opening of NDB Regional Offices and their activities. “We welcome the establishment of the Americas Regional Office in São Paulo, along with its sub-office in Brasília, and look forward to the opening of the two remaining NDB Regional Offices in Russia and India in 2020. Building up on the core functions of the Bank’s headquarters, its Regional Offices shall contribute to expanding its operations and striving for a more robust project portfolio for all member countries,” said the Declaration.
“We acknowledge the progress made by the New Development Bank towards expanding its membership. The expansion of the NDB membership in accordance with its Articles of Agreement will strengthen the Bank’s role as a global development finance institution and further contribute to the mobilization of resources for infrastructure and sustainable development projects in BRICS and other EMDC’s. We look forward to the Board of Governors concluding the preparatory work with the aim of taking timely and considered decisions on the expansion of the membership in due course.”
Selected Items of President’s Agenda
On November 12, 2019, the NDB President participated in CEO’s Forum India Brazil-Special Edition.
On November 13, 2019, Mr. K.V. Kamath delivered a presentation and answered questions of business leaders at the BRICS Business Forum in Brasília.
On the same date, the NDB President met with Brazil’s Minister of Infrastructure, Mr. Tarcisio Gomes. During their meeting, the Bank’s operations in Brazil were discussed.
On November 14, 2019, the NDB President had a meeting with Brazil Central Bank Governor Mr. Roberto Campos Neto.
During the Summit, the NDB President had discussions with VEB.RF Chairman Igor Shuvalov and Chairman of Executive Board of Russian Railways Oleg Belozerov.
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).