The New Development Bank (NDB), a multilateral lender with a focus on Brazil-Russia-India-China-South Africa (BRICS), is set to fund more than a dozen projects this year that will focus on renewable energy. Lending will commence in April and a project from each of the five member grouping countries will receive funding. There are also 10-15 projects in the pipeline for the remaining part of the year.
NDB President K.V. Kamath revealed at a media conference that the “initial focus” of the bank would on green energy projects. “I think it would be safe to say that more than half the projects both in number and value would be green and that is something that we are consciously doing and we are heartened by the response we are getting from various governments in proposing such projects.”
The NDB president on the eve of the signing of the Headquarters Agreement with the Chinese government that will officially launch the bank for operations,said that the bank was not geared to issue soft loans. “On the rate of interest, we will not be lending on concessional terms. That was not the intent at all. We will need to factor our own cost of funds and add an appropriate margin.”
He added the “cost of funds would be determined by our actual experience in the market. So we will function as a prudent bank should.”
With Africa one of its focal points, the NDB is set to open an African Regional Center, headquartered in Johannesburg, by H2 2016. It would aim to develop a “project pipeline” for the continent, a press statement said.