BRICS New Development Bank signs first non-sovereign loan in China

Aerial photo taken on June 17, 2022 shows the headquarters building of the New Development Bank (NDB) in east China's Shanghai. (Xinhua/Fang Zhe)

SHANGHAI, May 29 (Xinhua) -- The BRICS New Development Bank (NDB) has signed a loan agreement to support sustainable infrastructure development in east China's Zhejiang Province, marking the latest update of its first non-sovereign loan in China, the bank announced Tuesday.

Under the agreement, NDB will provide approximately 358 million yuan, 50 million U.S. dollars equivalent in RMB, to the Bank of Huzhou for financing a range of sustainable infrastructure development projects in Zhejiang.

The loan to the Chinese bank will be on-lent to private sector borrowers for financing sustainable infrastructure projects in the sectors of clean energy and energy efficiency, transportation and logistics, as well as water and sanitation, according to NDB.

Specifically, the signed loan agreement facilitates private sector participation in addressing infrastructure backlogs and scaling up investments, as well as enhancing development impact in the local market.

"NDB has embarked on providing non-sovereign loans in China. It highlights NDB's dedication to supporting the private sector in financing infrastructure and sustainable development projects that align with the development agendas of our member countries," said Vladimir Kazbekov, NDB Vice President and Chief Operations Officer, at the signing ceremony held at the NDB headquarters in Shanghai, adding that NDB aims to allocate 30 percent of overall financing to non-sovereign operations between 2022 and 2026.

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 market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.