NDB President on BRICS achievements

CNC
Added On August 12, 2017

It has been over a decade since Brazil, Russia, India, China and South Africa came together to form BRICS. 
 
A fundamental achievement has been the creation of the The BRICS New Development Bank, or NDB.
 
Ahead of the upcoming BRICS Summit in Xiamen next month, CNC sat down with the bank's President K.V. Kamath.
 
Founded by BRICS member states in 2014, the NDB opened in Shanghai in July 2015 and became fully operational in early 2016.
 
K.V. Kamath is the bank's first President.
 
At the upcoming BRICS summit, Kamath will present the bank's progress over the last two years as well as the direction it is heading in the coming two to three years.
 
The fruits of the bank's first NDB-funded loan - a solar power project in Shanghai - is expected to start operation this month.
 
Kamath told CNC he sees the Xiamen summit as a chance to help the five countries build a stronger economic partnership and a brighter future.
 
The bank is expected to approve five new projects with a total value of 1.5 billion U.S. dollars in September, with two of them in China.
 
Altogether, the bank has 23 projects at various stages of preparation for 2017-2018, with a total lending amount of 6 billion dollars. The bank granted loans to seven projects in 2016.
 
SOUNDBITE: K.V. KAMATH, President, BRICS New Development Bank
"Last year, we got approved the government of China to raise a RMB bond issue, with the first tranche of 3 billion, that is out of the approval they give us to raise 10 billion RMB. So, I'm happy to say that this year, based on the progress that we have made in projects in China, we will need to raise another tranche of RMB financing. It probably will be somewhere between 3 to 5 billion RMB out of the approval they give. We will approve the market in the next four or five months to meet this requirement."
 
According to its general strategy, the bank will put about two-thirds of its loans into sustainable infrastructure development.
 
The NDB is also looking into more local currency financing opportunities in member countries.
 
SOUNDBITE: K.V. KAMATH, President, BRICS New Development Bank
"Probably, India would be one of the first one, where there is a relative market for a bond called 'Masala bond', which is Rupee bond issued off-shore. And our dialogue with bankers in Russia and in other member countries indicate that there is a good scope to raise local currency bonds in these countries."
 
He also said that the bank will open its first regional office in Johannesburg of South Africa on Aug. 17.