New Development Bank
The New Development Bank (NDB) is a multilateral development bank founded by the BRICS nations—Brazil, Russia, India, China, and South Africa—in 2015 to mobilize funding for infrastructure and sustainable development initiatives in emerging markets and developing countries.[1][2] Headquartered in Shanghai, China, the NDB commenced operations in 2016 after receiving initial capital contributions and has since approved financing exceeding $40 billion across more than 120 projects focused on sectors such as clean energy, transportation, and digital infrastructure.[1][3] The bank's governance structure emphasizes equal shareholding among founding members, with decisions made through a board representing all participants, and it prioritizes innovative financing in local currencies to reduce foreign exchange risks.[4] Since its inception, the NDB has expanded its membership to include Bangladesh, Egypt, the United Arab Emirates, Uruguay, Algeria, Colombia, and Uzbekistan, reflecting efforts to broaden its reach amid growing infrastructure needs in the Global South.[1] Key milestones include issuing bonds in multiple currencies, establishing regional offices in Johannesburg, São Paulo, Moscow, and Gujarat, and allocating $10 billion for COVID-19 recovery efforts in 2020.[1] While positioned as a complement to Western-led institutions like the World Bank, the NDB has encountered challenges from geopolitical tensions involving member states, including sanctions on Russia, which have complicated operations and drawn criticism for limited additionality in project impacts beyond financial mobilization.[1][5][6] Dilma Rousseff, former president of Brazil, has led the bank since 2023, overseeing its 10th anniversary in 2025 with a reaffirmed commitment to sustainable strategies.[7][1]
History
Founding and Establishment (2014–2015)
The New Development Bank (NDB) was formally established through an agreement signed on July 15, 2014, during the sixth BRICS summit in Fortaleza, Brazil, by representatives of the founding member states: Brazil, Russia, India, China, and South Africa.[8][9] The agreement outlined the bank's structure as a multilateral development institution focused on financing infrastructure and sustainable development projects in BRICS countries and other emerging economies, with headquarters designated in Shanghai, China.[1][10] It specified an initial authorized capital of US$100 billion and subscribed capital of US$50 billion, equally distributed among the five founders at US$10 billion each, with provisions for equal voting rights regardless of capital contributions and rotation of the presidency among member countries.[8][11] Ratification proceeded variably across members, with Russia approving the agreement via federal law on March 9, 2015, and China ratifying it on July 1, 2015, through its National People's Congress Standing Committee.[12][13] The agreement entered into force on July 3, 2015, following sufficient ratifications as required under Article 4.[14] On July 7, 2015, the inaugural meeting of the NDB Board of Governors convened, appointing K. V. Kamath, former president of the Indian ICICI Bank, as the first president for a five-year term.[1] The bank launched operations on July 21, 2015, with an opening ceremony in Shanghai attended by finance ministers from the founding members, marking the receipt of initial paid-in capital installments and readiness to mobilize resources for development lending.[10][15] This establishment positioned the NDB as a counterweight to Western-dominated institutions like the World Bank and IMF, emphasizing non-interference in member policies and faster project approvals, though early operations focused on building governance frameworks before full lending commenced in 2016.[1][10]Initial Operations and Project Approvals (2016–2020)
The New Development Bank initiated its lending operations in 2016 following receipt of the first installment of paid-in capital from its founding members and approval of essential policies by its Board of Directors. In April 2016, the bank approved its inaugural set of four renewable energy projects totaling USD 811 million, distributed across Brazil, China, India, and South Africa. By the end of the year, seven infrastructure projects had been approved, exceeding USD 1.5 billion in value, with a focus on clean energy initiatives such as solar and wind power alongside transport improvements; notable examples included the Shanghai Lingang Rooftop Solar Project (RMB 525 million), the Fujian Province Offshore Wind Project (RMB 2 billion), and the Madhya Pradesh District Roads Project (USD 350 million).[16] The bank also issued its first green bond in July 2016 (RMB 3 billion) to fund sustainable projects and signed its initial loan agreement in December 2016.[16] In 2017, operations expanded with approval of seven additional projects committing USD 1.85 billion, emphasizing water resource management, social infrastructure, energy, and transport; key approvals encompassed the Rajasthan Water Sector Restructuring Project in India (USD 345 million) and the Ufa Road Eastern Exit Project in Russia (USD 69 million). The bank's General Strategy for 2017–2021 was endorsed in June, prioritizing clean energy, transport infrastructure, irrigation, water management, sanitation, and sustainable urban development. The Africa Regional Centre opened in Johannesburg in August, enhancing regional engagement.[17] Approvals accelerated in subsequent years, reflecting growing operational capacity and alignment with member priorities for infrastructure and sustainability. In 2018, 17 projects were approved for USD 4.6 billion, with clean energy and transport each comprising 27% of the portfolio, followed by water and sanitation (18%) and urban development (14%); the cumulative portfolio reached 30 projects totaling USD 8 billion, including initial non-sovereign loans. The bank secured AA+ ratings from Fitch and S&P, bolstering market access. By 2019, 22 projects amounting to USD 7.2 billion were approved, incorporating responses to emerging needs like economic recovery.[18][19]| Year | Projects Approved | Total Amount (USD billion) |
|---|---|---|
| 2016 | 7 | >1.5 |
| 2017 | 7 | 1.85 |
| 2018 | 17 | 4.6 |
| 2019 | 22 | 7.2 |
Membership Expansion and Strategic Shifts (2021–2025)
In 2021, the New Development Bank initiated its membership expansion beyond the founding BRICS countries (Brazil, Russia, India, China, and South Africa), with the Board of Governors approving the admission of Bangladesh on September 16, followed by the United Arab Emirates on October 4.[21] This marked the first phase of broadening the Bank's shareholder base to include additional emerging market and developing countries (EMDCs), aiming to enhance geographic diversity and foster South-South cooperation without significantly diluting existing members' shares, which decreased by approximately 5% overall.[22] Uruguay was admitted as a new member in this initial wave, announced on September 2, 2021, with formal accession processes completing by August 2023, extending the Bank's presence into South America.[23] [24] Egypt joined on February 20, 2023, after approval in December 2021, strengthening NDB's footprint in Africa and the Middle East.[21] [25] Algeria became the latest addition on May 19, 2025, further diversifying membership across the Global South.[21] New members subscribe to shares on terms requiring unanimous consent from existing shareholders, with eligibility open to United Nations members as either borrowing or non-borrowing entities, prioritizing strategic alignment with the Bank's mandate for infrastructure and sustainable development financing.[21] This expansion has supported NDB's goal of mobilizing resources for EMDCs, with approved project financing reaching $40 billion across 122 initiatives by mid-2025, though operations remain concentrated in member countries.[3] Parallel to membership growth, NDB adopted its General Strategy for 2022–2026, titled "Scaling Up Development Finance for a Sustainable Future," which outlined a shift toward aggressive capacity building and thematic prioritization.[26] Key elements include deploying $30 billion from the balance sheet through loans, equity, and guarantees; allocating 40% of financing to renewables and clean transportation; and expanding local currency lending to mitigate foreign exchange risks in client projects.[27] [28] The strategy emphasizes infrastructure in transport, water, and sanitation alongside sustainable development, with a target of 30% private sector financing by 2026—though progress lagged, with public sector projects dominating approvals through 2023.[29] These adjustments reflect NDB's evolution from an initial operational phase to a more ambitious role in addressing infrastructure gaps in the Global South, guided by demand from members and aligned with multilateral principles of equal voting rights among shareholders.[28]Objectives and Governance
Core Objectives and Mandate
The New Development Bank (NDB) was established pursuant to the Agreement on the New Development Bank signed on July 15, 2014, in Fortaleza, Brazil, with the core purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS member countries—Brazil, Russia, India, China, and South Africa—and other emerging market and developing economies (EMDEs).[8] This mandate seeks to complement the roles of existing multilateral and regional financial institutions by addressing financing gaps in these areas, thereby supporting broader global economic growth without the geopolitical dominance associated with Western-led bodies like the World Bank and International Monetary Fund.[8] The Bank's functions, as outlined in its founding agreement, include financing public and private sector projects through loans, guarantees, equity investments, and other instruments; providing technical assistance and cooperating with international, regional, and national entities; and supporting multi-country infrastructure and sustainable development initiatives.[8] Initial authorized capital was set at $100 billion, with subscribed capital of $50 billion equally distributed among the founding members to ensure parity in ownership and voting power, distinguishing the NDB from institutions where shareholding correlates with influence.[8] Operational objectives emphasize accelerating economic growth, enhancing environmental and social sustainability, and improving living standards in member countries through targeted investments in sectors such as clean energy and energy efficiency, transportation infrastructure, water and sanitation, digital infrastructure, environmental protection, and social infrastructure.[4] The NDB's General Strategy for 2022–2026 refines this mandate with quantifiable goals, including approving $30 billion in financing, allocating 40% to climate mitigation and adaptation projects aligned with the Paris Agreement and Sustainable Development Goals (SDGs), dedicating 30% to non-sovereign (private sector) operations, and issuing 30% of financing in local currencies to reduce currency risk for borrowers.[28] These priorities aim to mobilize additional private capital via co-financing, special funds, and innovative instruments, while maintaining a focus on high-impact projects in EMDEs.[28]Governance Structure and Decision-Making
The New Development Bank (NDB) operates under a governance framework designed for operational efficiency and equality among its founding members, with the Board of Governors serving as the highest decision-making body. All powers of the Bank are vested in the Board of Governors, which consists of one Governor and one Alternate Governor appointed by each member country, typically at the ministerial level. This board holds ultimate authority over strategic decisions, including the admission of new members and amendments to the founding Agreement, while delegating day-to-day management to the Board of Directors.[30][8] The Board of Governors meets at least annually, with decisions requiring a quorum of a majority of Governors representing two-thirds of total voting power; most matters are resolved by simple majority, though qualified majorities—such as two-thirds of voting power or approval from four founding members plus two-thirds—are mandated for critical actions like capital increases or suspending members. Voting power is proportional to subscribed shares in the Bank's capital stock, with the five founding BRICS members (Brazil, Russia, India, China, and South Africa) each holding equal shares of 20% initially, ensuring parity despite disparities in economic size and rejecting veto powers held by dominant shareholders in traditional multilateral development banks. For new members admitted since 2021, shares and voting rights are allocated such that the founding members collectively retain at least 55% of voting power, with no single new member exceeding 7%, to preserve foundational influence.[8][31] The Board of Directors, responsible for overseeing general operations and exercising powers delegated by the Governors, comprises one Director and one Alternate from each founding member, plus one Director representing groups of other members, for a total capped at ten. Operating as a non-resident body to streamline processes and reduce costs, it meets quarterly and similarly requires a majority quorum with two-thirds voting power for decisions, employing simple majorities for routine approvals like project financing. The President, elected on a rotational basis from among the founding members for a non-renewable five-year term, serves as a non-voting member of the Board of Directors but casts a deciding vote in cases of deadlock. This structure facilitates rapid strategic decision-making, as evidenced by the Bank's early emphasis on a lean, non-bureaucratic approach without political or economic conditionalities imposed on borrowers.[30][8][32] Supporting committees include the Audit, Risk and Compliance Committee and the Budget, Human Resources and Compensation Committee, both comprising all Board of Directors members and meeting regularly to advise on oversight functions. The framework prioritizes transparency, ethical standards, and accountability, with senior management executing operational directives under the Board's supervision.[30][32]Leadership and Key Personnel
The presidency of the New Development Bank (NDB) is held for a five-year term, with rotation among the founding BRICS member countries to ensure equitable representation in leadership.[8] Dilma Rousseff, a Brazilian national and former President of Brazil (2011–2016), has served as NDB President since March 24, 2023, following Marcos Prado Troyjo.[33] [34] She was unanimously re-elected by the Board of Governors on March 25, 2025, for a subsequent term from July 7, 2025, to July 6, 2030, reflecting continuity in Brazilian leadership during this cycle.[7] In this role, the President acts as chief of the Bank's operating staff, conducts day-to-day activities under the direction of the Board of Directors, and represents the institution internationally, including engagements with heads of state such as meetings with Russian President Vladimir Putin in June 2025 and Chinese President Xi Jinping in January 2025.[35] [36] [37] The Bank's senior management team supports the President in operational and risk oversight. Roman Serov serves as Vice-President and Chief Operating Officer, managing core administrative and project implementation functions.[35] Dr. Rajiv Ranjan, appointed on August 23, 2025, for a five-year term, holds the position of Vice-President and Chief Risk Officer, focusing on financial risk assessment and mitigation across the NDB's portfolio.[35] [38] Additional key roles include specialized directors and officers drawn from member countries, ensuring alignment with the Bank's mandate for infrastructure and sustainable development financing. Governance is vested in the Board of Governors, comprising one Governor and one alternate per member country, typically at the finance minister or equivalent level, who approve major policies, capital increases, and presidential appointments.[30] The Board of Directors, delegated operational authority by the Governors, consists of executive directors nominated by members proportional to shareholdings and oversees lending approvals, budgets, and strategic execution, meeting regularly to advance projects in sectors like energy and transportation.[30] This structure emphasizes consensus among BRICS and new members, avoiding veto powers held by single nations in institutions like the World Bank.[8]Membership and Capital Structure
Original BRICS Membership and Shareholding
The New Development Bank (NDB) was established by the five founding members of the BRICS group—Brazil, Russia, India, China, and South Africa—through the signing of the Agreement on the New Development Bank on July 15, 2014, during the BRICS summit in Fortaleza, Brazil.[8] These original members committed to equal participation to finance infrastructure and sustainable development projects, positioning the NDB as a multilateral alternative to institutions dominated by Western powers.[31] Each founding member subscribed to an equal portion of the initial capital, holding 20% of the subscribed shares and voting rights, with no single country possessing veto power—a deliberate departure from weighted voting systems in bodies like the International Monetary Fund.[39] The bank's authorized capital was set at $100 billion, with an initial subscribed capital of $50 billion divided equally among the five nations, comprising $10 billion in paid-in shares (20% of subscribed capital) and $40 billion in callable shares.[8] Specifically, the subscribed capital consists of 500,000 shares at $100,000 each, with each BRICS country subscribing 100,000 shares, including 20,000 paid-in shares ($2 billion per member) and 80,000 callable shares ($8 billion per member).[39] This equal shareholding structure underscores the NDB's emphasis on parity among members, irrespective of economic size—China's GDP vastly exceeds that of the others—reflecting a principle of consensus-based governance outlined in the founding agreement.[8] The Articles of Agreement stipulate that original members' collective share cannot fall below 55% of total subscribed capital upon future expansions, preserving BRICS influence.[8]| Country | Subscribed Shares | Percentage of Subscribed Capital | Paid-in Capital ($ billion) | Callable Capital ($ billion) |
|---|---|---|---|---|
| Brazil | 100,000 | 20% | 2 | 8 |
| Russia | 100,000 | 20% | 2 | 8 |
| India | 100,000 | 20% | 2 | 8 |
| China | 100,000 | 20% | 2 | 8 |
| South Africa | 100,000 | 20% | 2 | 8 |
Expansion to Additional Members
The New Development Bank (NDB) initiated membership expansion beyond its founding BRICS members (Brazil, Russia, India, China, and South Africa) through amendments to its Articles of Agreement, which permit admission of other United Nations member states as either borrowing or non-borrowing members to broaden its shareholder base and geographic reach.[21] This process began with approvals by the Board of Governors in 2021 for the first non-founding members, aimed at reducing concentration risk among original shareholders and supporting infrastructure financing in underrepresented emerging economies.[28] [40] The expansion has proceeded incrementally, with formal admissions tied to capital subscription commitments and ratification processes. Bangladesh was admitted on September 16, 2021, as the inaugural additional member, followed by the United Arab Emirates on October 4, 2021.[21] Egypt joined on February 20, 2023, contributing to the Bank's focus on African and Middle Eastern development priorities.[21] Uruguay's membership was approved alongside these initial additions but finalized later in the process, while Algeria became the most recent member on May 19, 2025, enhancing North African representation.[21] [41]| Country | Admission Date |
|---|---|
| Bangladesh | September 16, 2021[21] |
| United Arab Emirates | October 4, 2021[21] |
| Egypt | February 20, 2023[21] |
| Uruguay | 2021 (approved; formalized post-2021)[28] [41] |
| Algeria | May 19, 2025[21] |
Capital Subscription and Financial Capacity
The New Development Bank (NDB) was established with an authorized capital of USD 100 billion, comprising 1,000,000 shares each valued at USD 100,000.[39] The initial subscribed capital totaled USD 50 billion across 500,000 shares, equally allocated among the five founding BRICS members—Brazil, Russia, India, China, and South Africa—with each subscribing 100,000 shares equivalent to USD 10 billion.[39] Of this initial subscription, USD 10 billion represented paid-in capital (20% of subscribed), providing immediate liquidity, while the remaining USD 40 billion constituted callable capital, available to meet obligations if needed.[39] [31] Membership expansion since 2021 has involved new members subscribing additional shares from the unsubscribed portion of authorized capital, increasing the total subscribed capital beyond the initial USD 50 billion and diluting founding members' stakes to approximately 18.76% each.[39] As of the latest available data, new borrowing members such as Algeria (6,140 shares, USD 614 million), Bangladesh (9,420 shares, USD 942 million), and Egypt (11,960 shares, USD 1.196 billion), along with non-borrowing member UAE (5,560 shares, USD 556 million), have contributed roughly USD 3.3 billion in additional subscriptions, bringing total subscribed capital to approximately USD 53.3 billion.[39] Founding members have fully paid their shares in seven installments as per the founding agreement, while new members have paid initial installments (e.g., first three for Bangladesh and UAE, first for Egypt).[39] Uruguay, admitted as a borrowing member, follows a similar subscription process, though specific share details remain aligned with the strategy to preserve founding members' combined voting power at no less than 55%.[31] This capital structure underpins NDB's financial capacity, positioning it among major multilateral development banks with a robust base for project financing.[42] The 20% paid-in ratio supports operational liquidity for disbursements, which reached USD 22.4 billion across approved projects totaling USD 40 billion by mid-2025, while callable capital enhances creditworthiness.[3] NDB's AA rating from Fitch Ratings as of May 2025 reflects strong shareholder support and capital quality, enabling efficient access to capital markets for bond issuances that amplify lending capacity beyond equity subscriptions.[43] No single member holds veto power, and equal subscriptions among founders ensure balanced governance without dominance.[44]| Member Category | Example Subscriptions (Shares / USD Equivalent / %) |
|---|---|
| Founding Members (each) | 100,000 shares / USD 10 billion / 18.76%[39] |
| New Members (e.g., Algeria) | 6,140 shares / USD 614 million / 1.15%[39] |
| New Members (e.g., Bangladesh) | 9,420 shares / USD 942 million / 1.77%[39] |
| New Members (e.g., Egypt) | 11,960 shares / USD 1.196 billion / 2.24%[39] |
| New Members (e.g., UAE) | 5,560 shares / USD 556 million / 1.04%[39] |
Activities and Operations
Project Financing and Portfolio Overview
The New Development Bank (NDB) finances sovereign and non-sovereign projects primarily through senior loans, with additional instruments including guarantees, equity participation, and syndicated loans, targeting infrastructure and sustainable development initiatives in member countries to promote economic growth and environmental sustainability.[45][46] The Bank's lending process emphasizes rapid approval—often within months—while adhering to risk management standards, focusing on projects that align with national priorities and Sustainable Development Goals without imposing policy conditionality typical of some Western-led institutions.[40] As of July 2025, NDB's portfolio comprised 122 approved projects totaling $40 billion in financing commitments since its inception in 2014, spanning founding BRICS members and newer adherents.[3] Earlier data as of December 31, 2024, indicated 120 projects approved for $39 billion, with disbursements reaching approximately $19.4 billion by mid-2024 across evaluated operations.[45][6] Approximately two-thirds of financing has been denominated in U.S. dollars, reflecting the Bank's access to global capital markets, though it increasingly issues in local currencies to mitigate foreign exchange risks for borrowers.[47] Key sectors include clean energy and energy efficiency (accounting for significant renewable capacity additions of 2,400 MW), transport infrastructure (e.g., roads totaling 40,400 km and urban metro systems), water and sanitation (288,800 m³/day drinking water supply and 1,400 km of tunnels/canals), environmental protection, social infrastructure (35,000 housing units), and digital infrastructure.[45][48] These projects have yielded measurable impacts, such as avoiding 14.7 million tonnes of CO₂ emissions annually, with independent evaluations rating 73-82% of sampled initiatives as successful in relevance, effectiveness, and impact based on predefined targets.[45][6]| Portfolio Metric (as of Dec. 2024) | Value |
|---|---|
| Approved Projects | 120 |
| Approved Financing (USD billion) | 39.0 |
| Renewable Energy Capacity Added (MW) | 2,400 |
| CO₂ Emissions Avoided (million tonnes/year) | 14.7 |
| Road Infrastructure (km) | 40,400 |
Key Sectors and Project Examples
The New Development Bank (NDB) concentrates its financing on infrastructure and sustainable development projects within its member countries, emphasizing sectors such as clean energy and energy efficiency, transport infrastructure, water and sanitation, environmental protection, social infrastructure, and digital infrastructure.[45][50] These areas are selected to address infrastructure gaps, promote green recovery, and foster inclusive economic growth, with projects aligned to multiple Sustainable Development Goals (SDGs), particularly SDG 9 on industry, innovation, and infrastructure.[51] By the end of 2022, the NDB had approved approximately USD 32.8 billion across 96 projects, with subsequent approvals expanding the portfolio to over 120 infrastructure and sustainable development initiatives by mid-2025.[51][49] In the clean energy sector, the NDB supports renewable energy initiatives to enhance energy security and reduce carbon emissions. For instance, the Serra da Palmeira Wind Power Project in Brazil, approved on September 17, 2025, aims to develop wind power capacity in the northeastern region, contributing to the country's transition to low-carbon energy sources.[52] Similarly, the Mizoram Tuirini Small Hydro Project in India, approved on September 13, 2025, finances small-scale hydroelectric development to provide reliable renewable power in remote areas.[52] Transport infrastructure projects form a core component of the NDB's portfolio, focusing on connectivity and urban mobility. The Delhi-Ghaziabad-Meerut Regional Rapid Transit System in India exemplifies this, with NDB financing supporting the construction of a high-speed rail corridor to integrate regional urban centers and alleviate congestion.[52] In China, the Luoyang Metro Project extends urban rail networks to improve public transport efficiency and reduce reliance on fossil fuel-based vehicles.[52] Environmental and social infrastructure efforts include water management and sustainable urban development. The Banco do Brasil Sustainable Finance Project in Brazil channels funds to agribusiness-linked sustainable infrastructure, enhancing productivity while promoting environmental safeguards such as reduced deforestation.[53] In South Africa, the Renewable Energy Sector Development Project, one of the NDB's early African initiatives approved prior to 2020, supported independent power producers to expand solar and wind capacity, demonstrating measurable impacts on energy diversification.[54] These projects underscore the NDB's operational strategy of non-sovereign and sovereign lending to achieve developmental outcomes without imposing policy conditionality typical of Western-led institutions.[4]Development Impact and Evaluation
The New Development Bank's Independent Evaluation Office (IEO) assesses the effectiveness of its operations through project evaluations, thematic reviews, and the inaugural Report on Development Results (RDR) published in 2025, which synthesizes findings from 13 evaluation reports covering 11 projects representing 56% of total disbursements ($10.81 billion out of $19.41 billion) as of July 2024.[6] These evaluations apply standardized criteria including relevance, effectiveness, efficiency, impact, and sustainability, with overall project success rated on a scale from highly unsatisfactory to highly successful.[6] By mid-2025, the Bank's cumulative approvals reached approximately $40 billion across 122 projects, with $22.4 billion disbursed, primarily in infrastructure sectors like renewable energy, transport, and water.[55] [6] Empirical outcomes from evaluated projects demonstrate contributions to environmental and infrastructural goals, particularly in renewable energy, where financing supported additions of 600 megawatts to grids and annual carbon dioxide emission reductions of 1.6 million tonnes in one Brazilian initiative.[6] In transport, projects such as the Mumbai Metro Line facilitated a 40% modal shift from private vehicles, lowering emissions, while road developments in India exceeded targets by constructing 1,551 kilometers against a planned 1,500 kilometers, though some increased emissions due to expanded vehicle use.[6] Water sector interventions, like Rajasthan's rural scheme, improved access but encountered delays in adopting water-efficient technologies.[6] These results align with the Bank's mandate for sustainable infrastructure in emerging economies, with energy projects diversifying mixes and mitigating load-shedding in South Africa.[6] IEO ratings indicate 91% of evaluated projects as successful overall, with strong scores in impact (80% successful or better) and effectiveness (82%), but lower marks for efficiency (moderately successful at 82%) and the Bank's own performance due to administrative delays and supervision gaps.[6] Average criterion scores ranged from 4.2 (efficiency and NDB performance) to 5.2 (impact) on a 6-point scale, with no projects rated highly successful.[6] Lessons emphasize the value of local partnerships for relevance and sustainability, while recommending enhanced monitoring frameworks, technical assistance, and exit strategies to address weak gender and social inclusion.[6] Challenges identified internally include limited technical capacity, high staff turnover, and insufficient non-lending activities such as knowledge products, which constrain broader developmental leverage.[6] Externally, critics argue that disbursements remain slow relative to approvals, with implementation lags yielding limited on-ground results and project selections favoring geopolitical alignment over pure developmental merit, such as supporting extractive models in South Africa that perpetuate uneven growth and fossil fuel reliance.[56] In Africa, where 14 projects (totaling billions in transport, energy, and water, concentrated in South Africa) provide supplementary financing, effectiveness is hampered by transparency deficits, inadequate public engagement, and operational bottlenecks akin to those in established multilateral banks, without a fully operational independent accountability mechanism.[57] Overall scale remains modest compared to institutions like the World Bank, limiting systemic impact despite avoiding conditionalities.[56]Financial Instruments and Funding
Bond Issuances and Capital Markets Access
The New Development Bank (NDB) has accessed capital markets primarily through its Euro Medium Term Note (EMTN) programme, enabling issuances in multiple currencies to diversify funding sources and support local currency financing for member countries' infrastructure projects.[58][59] This strategy emphasizes reducing currency mismatch risks by issuing bonds in currencies of borrower nations, with approximately one-third of its roughly $11 billion in total bond issuances conducted in local currencies as of September 2025.[60] NDB's inaugural bond issuance occurred in July 2016 with a CNY 3 billion green bond in China's onshore market, marking the first green bond issued by a multilateral development bank (MDB) in renminbi and adhering to China's green bond guidelines for sustainable projects.[22] Subsequent issuances have included benchmark USD bonds, RMB Panda bonds via the China Interbank Bond Market (CIBB) and Bond Connect scheme, and specialized instruments like SOFR-linked floating rate notes. The bank paused USD-denominated issuances following the 2022 Russia-Ukraine conflict amid market volatility but resumed in April 2023 with a USD 1.25 billion three-year green bond.[61][58] Key issuances demonstrate NDB's growing market presence and focus on sustainable finance:| Date | Currency/Amount | Type/Details | Maturity/Coupon |
|---|---|---|---|
| July 2016 | CNY 3 billion | Green bond (first RMB-denominated green bond by an MDB) | N/A |
| December 2021 | USD 500 million | SOFR-linked floating rate note (pandemic support) | 3 years |
| May 2022 | CNY 7 billion | Panda bond (largest foreign issuer bond in CIBB at issuance) | 3 years |
| April 2023 | USD 1.25 billion | Green bond (EMTN benchmark) | 3 years |
| October 2024 | USD 1.25 billion | Green bond (EMTN benchmark) | 3 years / 4.677% (SOFR MS + 80 bps) |
| March 2025 | USD 1.25 billion | Benchmark bond (EMTN) | 3 years / 4.375% |
| August 2025 | CNY 7 billion | Panda bond (Series 3, Bond Connect) | 3 years / 1.82% |