On October 14, 2019, the Board of Directors of the New Development Bank (NDB) approved two projects worth USD 800 million, bringing the Bank’s portfolio to 44 projects with loans aggregating to USD 12.4 billion.

The following projects were approved:

Fundo Clima  Brazil National Climate Fund Project

The Bank will provide a sovereign loan of USD 500 million to the Federative Republic of Brazil for the Fundo Clima – Brazil National Climate Fund Project. The project is aimed at capitalizing Fundo Clima to expand its on-lending operations to sub-projects contributing to climate change mitigation and adaptation. Fundo Clima is a fund established under the Ministry of Environment (MMA) in 2010 to respond to the National Policy on Climate Change.

The loan represents a threefold increase of Fundo Clima operations and the total amount of USD 500 million is expected to be fully committed by 2024. Sectors including urban mobility, waste treatment, renewable energy, energy efficiency are expected to be financed under the project.

Renewable Energy Sector Development Project

The Bank will provide a loan of USD 300 million to REC Limited to support the Government of India’s increasing investment in the renewable energy sector. The Project is aimed at improving the energy mix in India by providing funds for the construction and commissioning of renewable energy sub-projects. The Project will create jobs and contribute to the reduction of carbon emissions and environmental pollution.

Background Information

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).