New Development Bank
The New Development Bank (NDB) is a multilateral development bank established by Brazil, Russia, India, China, and South Africa (BRICS). It was established to mobilize resources for infrastructure and sustainable development projects in emerging markets and developing countries.
The bank was established through the Agreement on the New Development Bank, signed at the Sixth BRICS Summit in Fortaleza, Brazil, in 2014. Its headquarters are in Shanghai, China.
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History
The NDB was established by the BRICS countries as part of efforts to strengthen development financing and increase cooperation among emerging-market economies.
The founding agreement was signed on 15 July 2014 during the Sixth BRICS Summit in Fortaleza.
The bank formally began operations in 2015.
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Purpose
The principal purpose of the NDB is to mobilize resources for infrastructure and sustainable-development projects in member countries and other emerging and developing economies.
Its activities can support areas including:
- transport infrastructure;
- energy;
- water and sanitation;
- urban development;
- environmental sustainability;
- social infrastructure;
- digital infrastructure.
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Membership
The NDB was founded by Brazil, Russia, India, China, and South Africa.
The bank subsequently expanded its membership beyond the original five founding members.
Membership provides countries with access to the bank's financing and creates a framework for participation in its governance and institutional activities.
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Capital structure
The NDB is a capital-based multilateral development institution. Its financing capacity is supported by subscribed capital provided by its members and by funds raised in financial markets.
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The bank can raise funds through the issuance of debt and other financing instruments, subject to its financial policies and market conditions.
Financing
The NDB provides financing for eligible development projects.
Its financing instruments can include:
- loans;
- guarantees;
- equity investments;
- other financial instruments permitted under its institutional framework.
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Project assessment can consider financial, economic, environmental, social, and institutional factors.
Sustainable development
Sustainable development is a central component of the NDB's financing activities.
Projects can address areas such as renewable energy, energy efficiency, climate resilience, sustainable transport, water management, and other forms of environmentally sustainable infrastructure.
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Governance
The NDB is governed through institutional bodies established under its founding agreement.
Its governance structure includes a Board of Governors and a Board of Directors, together with the bank's management.
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The founding members have equal voting rights under the original capital structure.
Headquarters
The headquarters of the NDB are located in Shanghai, China.
The bank also operates through offices and institutional arrangements associated with its member countries and international activities.
Relationship with the BRICS grouping
The NDB was created through cooperation among the BRICS countries but is institutionally distinct from the broader BRICS grouping.
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The NDB operates as a multilateral development bank with its own legal framework, capital structure, governance arrangements, and operational policies.
Role in development finance
The NDB forms part of the broader international system of multilateral development finance.
Its role is complementary to that of other development-finance institutions and does not replace national governments, commercial banks, or other multilateral development banks.
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The NDB contributes additional financing capacity for infrastructure and sustainable-development projects.