On November 13, 2019, New Development Bank (NDB) and the Government of the Russian Federation signed the Agreement on the hosting of the New Development Bank Eurasian Regional Centre (ERC) in the Russian Federation. The Agreement was signed in Brasilia, Brazil by Mr. K.V. Kamath, the NDB President and Mr. Sergei Storchak, Deputy Minister of Finance of Russia, Chairman of the NDB Board of Directors.
According to the Agreement, the ERC will be located in Moscow. The Bank may establish premises, upon consent by the Government, in other cities within Russia, based on the NDB’s business needs.
“Signing of this Agreement is an important achievement for the NDB. It will help the Bank strengthen its regional presence and create new possibilities for developing the NDB’s project pipeline, knowledge sharing and capacity building. The core function of ERC will be identification and preparation of bankable projects in Russia and other member countries, subsequent to the decision by the Board of Governors on new members,” said Mr. K.V. Kamath.
“We are happy to sign the Agreement on the hosting of the Eurasian Regional Centre. ERC will strengthen the NDB’s operations and allow to increase significantly Bank’s approvals in Russia. Opening and operationalization of ERC will become another important milestone, creating new opportunities for the Bank,” said Mr. Sergei Storchak.
In accordance with the Articles of Agreement, the NDB may establish offices necessary for the performance of its functions. The first regional office of the NDB – Africa Regional Center – was opened in Johannesburg on August 17, 2017. Agreement on the hosting of the second regional office of the NDB – Americas Regional Office (ARO) in Sao Paulo, Brazil – was signed on July 26, 2018.
As highlighted in the NDB’s General Strategy: 2017 – 2021, identification and preparation of bankable projects is the core function of the Bank’s regional offices. By working with strategic partners with strong implementation capability and a shared interest in infrastructure and sustainable development, regional offices of the NDB contribute significantly to enhancing the Bank’s overall impact.
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).