New Development Bank Current Affairs
The New Development Bank (NDB) of the BRICS countries is set to issue its first yuan-denominated bonds to finance sustainable development projects.
The NDB’s first five-year yuan-denominated bonds (or green bonds) will be issued after receiving a rating from international ratings agencies as well as getting authorities’ approval.
Further, the NDB plans to release more bonds in local currencies including in Indian Rupee if the bank’s board and local authorities endorse the project plans
The Shanghai-based New Development Bank (NDB) has been founded by Brazil, Russia, India, China and South Africa (BRICS). It is headed by eminent Indian banker K V Kamath.
The bank plans to finance sustainable development projects in the emerging markets and developing countries. It announced its first batch of loans on April 2016, providing US $300 million to Brazil, US $81 million to China, US $250 million to India and US $180 million to South Africa.
India’s largest private sector lender ICICI Bank has inked a MoU with the BRICS Grouping-promoted New Development Bank (NDB) for a partnership in bond issuances, co-financing, treasury management and human resources.
With this ICICI Bank becomes first financial institution in the country to tie up with the BRICS Grouping-promoted NDB.
The MoU was signed by BDB’s first President and ICICI Bank veteran KV Kamath and ICICI Bank Chief Chanda Kochhar in Mumbai, Maharashtra.
- The MoU will help NDB in exploring rupee-denominated bonds in the domestic and international markets.
- It will make both the lenders collaborate to fund development projects in India.
- They will also leverage a mutually beneficial partnership in other areas such as treasury risk management, human resource development and account and cash management services.
- The MoU will help NDB to leverage the deep market access and insight of ICICI Bank in the India’s financial markets.
About New Development Bank
- NDB is a multilateral development bank promoted by BRICS nations viz. Brazil, Russia, India, China and South Africa. It is outcome of 6th BRICS Summit being held in Fortaleza, Brazil.
- It is headquartered in Shanghai, China. It will have a regional office in Johannesburg, South Africa.
- NDB began its operations in July 2015 with an initial capital of 100 billion dollars.
- The goal of the bank is to fund infrastructure projects in emerging economies for sustainable development.
- In the NDB, each participant country has been assigned one vote, and none of the countries have veto power.