By Accommodation Times Bureau
The New Development Bank (NDB), plans to almost double its loan book to $16 billion this year and increase its impact, as the Bank seeks to broaden its global development partnerships and mobilise more institutional and private capital.
NDB is a multilateral finance institution established by Brazil, Russia, India, China and South Africa (BRICS) in 2014.
The announcements were made at the 4th Annual Meeting of the NDB in Cape Town, South Africa.
“In 2019 the Bank will build on the strong momentum in our operations and aims to double its loan approval book to about $16 billion,” said K. V. Kamath, President of the NDB. The Bank will ramp up its hard currency financing from the international capital markets, it added.
In 2018, the NDB approved 17 loans totalling about $4.6 billion, building on its base of 13 loans worth $3.4 billion as of the end of 2017. That brought the total loan book of the bank to 30 projects worth approximately $8 billion by the end of last year.
The NDB also announced that on March 31, 2019, its Board of Directors had approved five additional projects with loans aggregating to approximately $1.2 billion, two in China and three in South Africa, taking its total loan book to $9.2 billion as of today.
“The share of the BRICS countries in world GDP in PPP terms has grown from 30% to 36% since 2010”, said Kamath.
In the Annual Meeting on this year, the Bank announced that it had signed a USD 180 million loan agreement with Eskom to fund the integration of 670 Megawatts (MW) of renewable energy into South Africa’s power grid as well as a two-step USD 300 million loan to the Development Bank of Southern Africa (DBSA) to reduce emissions of greenhouse gasses and support renewable energy in South Africa.
“We plan to end the year with total loan approvals of about $2.3 billion in South Africa,” he said