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BRICS New Development Bank approved first set of loans for renewable energy

Apr 18, 2016 11:22 IST

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, on 16 April 2016 approved its first set of loans valued at 811 million US dollars. The loan will be used by four BRICS countries namely Brazil, India, China and South Africa to create 2370 MW of renewable energy capacity.

7th BRICS Summit held in Ufa, Russia

The loan was approved by its Board of Directors during its fifth meeting held in Washington on the sidelines of the IMF and the World Bank group spring meetings.

Each loan modality is different based on project specific features and borrower preferences. Government approvals, where necessary, will be sought as part of follow-up procedures.

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Nations wise allocations include

• Brazil - 300 million dollar

• China - 81 million dollar

• India - 250 million dollar

• South Africa - 180 million dollar

The project from India entails provisioning of a multi-tranche loan of 250 million dollar to Canara Bank for lending to renewable energy ventures.

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NDB formally launched full operations in February 2016 is backed by the BRICS countries - Brazil, Russia, India, China and South Africa. The bank has been viewed as a challenge to other international institutions such as the World Bank and International Monetary Fund (IMF).

The BRICS have brought in capital of 1 billion dollar as initial contribution for the new lender and its board has approved the issuance of five-year bonds in Chinese yuan.

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