New Development Bank and Black Sea Trade and Development Bank Cooperate to Support Russian Maritime Sector
NDB provides a 2-year EUR 100 million loan to BSTDB to finance the expansion of seaport capacity and maritime operations in Russia
February 3, 2021 – The New Development Bank (NDB) and the Black Sea Trade and Development Bank (BSTDB) signed a EUR 100 million Loan Agreement for the Russian Maritime Sector Support Program. The Loan Agreement was signed by Mr. Dmitry Pankin, President of BSTDB and Mr. Xian Zhu, Vice President and Chief Operating Officer of NDB. The Program will primarily focus on the development of Russia’s trade-enabling infrastructure, including seaports and maritime vessels, but also will have a broader scope by including river transport and supporting railway infrastructure that in many instances serves as a feeder for maritime transport. BSTDB will on-lend the NDB funds to port owners and operators, as well as to maritime companies.
The Program is expected to facilitate economic growth in Russia by enhancing national competitiveness in international trade via increased cargo-handling capacity and efficiency. It will also improve water transport connectivity by expanding Russia’s passenger fleet.
Mr. Dmitry Pankin, BSTDB President stressed that “seaport transport infrastructure is essential for the economic growth and regional cooperation that BSTDB is mandated to support. This operation demonstrates important synergies between our two multilateral development banks. We are using our comparative advantages to increase the developmental impact and efficiency of our operations to the benefit of member countries. The loan will support the enhancement of the current BSTDB’s contribution to the implementation of the Transport Infrastructure Development Plan of the Russian Federation to over USD 130 million”.
“We are delighted to sign the Loan Agreement with BSTDB for the Russian Maritime Sector Support Program. It is the first seaport infrastructure project supported by NDB in Russia, which marks a new stage in the diversification of the Bank’s operations,” said Mr. Xian Zhu, NDB VP & COO. “High-quality and efficient seaport transport infrastructure can unlock bottlenecks and enhance accessibility to markets, bringing about a wide range of socio-economic opportunities and benefits with positive multiplier effects.”
The New Development Bank (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. 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).
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s. For information on BSTDB, visit www.bstdb.org.