Arab News Headlines

NDB at 7: New Development Bank Celebrates Seven Years of Accomplishments

SHANGHAI, July 22, 2022 /PRNewswire/ — The New Development Bank (NDB) is celebrating its seventh anniversary with a journey of achievements. The Bank – established by the BRICS countries – started its operations in July 2015. Over the past seven years, NDB has evolved from a start-up to a major provider of development solutions. It operates in countries that exhibit great economic dynamism and have a strong demand for infrastructure.

NDB recently completed its initial capitalization of USD 10 billion of equity contributed by founding members. Since its foundation, the Bank has approved nearly USD 32 billion for infrastructure and sustainable development projects in four continents. The Bank has become an agile, lean, modern and fit-for-purpose institution.

NDB’s project portfolio features investments in areas such as clean energy, urban mobility, water, sanitation, transport, social and digital infrastructure. Projects supported by NDB will help build or upgrade 15,700 km of roads, 850 bridges and 260 km of rail transit networks. This is larger than the diameter of planet Earth. They are also expected to avoid 13 million tonnes of carbon dioxide (CO2) emissions per year and increase drinking water supply capacity by 209,000 m³/day, among a range of other development results.

These are projects that support the commitments by NDB member countries towards the Sustainable Development Goals (SDGs). They are implemented using country systems for environmental, social, governance (ESG) and procurement practices, without imposing policy prescriptions or conditionalities to the operations. Over 20% of project approvals are denominated in local currencies, helping clients to mitigate foreign-exchange risk and supporting the development of domestic capital markets.

In 2016, only about one year after starting operations, NDB made its inaugural bond issuance – a Green Financial Bond of RMB 3 billion. NDB was the first international financial institution to issue such instrument in China’s Interbank Bond Market. The Bank has since then raised over USD 10 billion in domestic and international capital markets, including the first-ever SDG bond following the United Nations Development Programme (UNDP) SDG Impact Standards.

Credit rating agencies have assigned NDB a very high rating – several notches above the average of its member countries. NDB embraces prudent risk management policies, has large capital buffers and adopts very strong liquidity metrics. The Bank abides by high standards in terms of governance, procurement and social responsibility.

In 2021, NDB admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as new members. They add over 280 million people that can benefit from NDB’s mission, while strengthening the Bank’s global outreach. Also in 2021, the Bank moved to its permanent headquarters, a modern architectural landmark located in Shanghai.

The recently approved 2022-2026 General Strategy aims at providing USD 30 billion over the next five years. Over this period, NDB will expand operations with the private sector, multiply development impact and direct 40% of its approvals to climate change mitigation and adaptation. NDB is embarking on a new phase in its journey to become a premier development institution for emerging economies.