New Development Bank
New Development Bank
The idea for setting up the bank was proposed by India at the 4th BRICS summit in 2012 held in Delhi. The creation of a new development bank was the main theme of the meeting. BRICS leaders agreed to set up a development bank at the 5th BRICS summit held in Durban, South Africa on 27 March 2013.
On 15 July 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank, which makes provisions for the legal basis of the bank. In a separate agreement, a reserved currency pool worth $ 100 billion was set up by BRICS nations.
On 11 May 2015, K. V. Kamath was appointed as the President of the bank.
The 7th BRICS summit in July 2015 marked the entry into force of the Agreement on the New Development Bank.
On 27 February 2016, the NDB signed Headquarters Agreement with the Government of the P.R.C. and the Memorandum of Understanding with Shanghai Municipal People's Government concerning the arrangements in relation to Headquarters of the bank in Shanghai.
According to the bank, most of the NDB policies and procedures for all functional areas were approved at the Board of Directors meeting in January 2016.
On 19 July 2016, the NDB reported that it successfully issued the bank's first green financial bond with issue size of RMB 3 billion, tenor of 5 years in the China interbank bond market.
On 20 July 2016, the first annual meeting of the NDB Board of Governors was held in Shanghai. The participants of the meeting discussed Bank's future work and development and gave a positive assessment to the bank's work. At the meeting, the first green financial bond issuance in Renminbi was enhanced as a milestone event for the NDB.
Timeline showing NDB creation milestones
NDB Creation Milestones
In 2016, the NDB Board of Directors approved the first set of projects in all members of the bank.
In 2016, the NDB Board of Directors approved the first set of projects in all members of the bank.
On 21 December 2016, the NDB signed its first loan agreement.
The NDB received AA + credit ratings from S&P Global Ratings (S&P) and Fitch Ratings (Fitch) in August 2018, which enables the bank to offer full suite of financial products to its public and private sector clients.
As of March 2019, the bank announced to issue loans of up to $ 40 billion by 2022 in South Africa.