This article may be in need of reorganization to comply with Wikipedia’imf membership requirements layout guidelines. Please help by editing the article to make improvements to the overall structure. The initial subscribed capital of the bank was equally distributed among the founding members.
The bank is headquartered in Shanghai, China. The first regional office of the NDB is in Johannesburg, South Africa. The idea for setting up the bank was proposed by India at the 4th BRICS summit in 2012 held in Delhi. The creation of a new development bank was the main theme of the meeting. On 15 July 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank, which makes provisions for the legal basis of the bank.
Kamath was appointed as the President of the bank. The 7th BRICS summit in July 2015 marked the entry into force of the Agreement on the New Development Bank. On 27 February 2016, the NDB signed Headquarters Agreement with the Government of the P. Memorandum of Understanding with Shanghai Municipal People’s Government concerning the arrangements in relation to Headquarters of the bank in Shanghai.
According to the bank, most of the NDB policies and procedures for all functional areas were approved at the Board of Directors meeting in January 2016. On 19 July 2016, the NDB reported that it successfully issued the bank’s first green financial bond with issue size of RMB 3 billion, tenor of 5 years in the China interbank bond market. On 20 July 2016, the first annual meeting of the NDB Board of Governors was held in Shanghai. The participants of the meeting discussed Bank’s future work and development and gave a positive assessment to the bank’s work. At the meeting, the first green financial bond issuance in Renminbi was highlighted as a milestone event for the NDB.
In 2016, the NDB Board of Directors approved the first set of projects in all members of the bank. On 21 December 2016, the NDB signed its first loan agreement. August 2018, which enables the bank to offer full suite of financial products to its public and private sector clients. Information about the composition of the NDB Board of Governors is available on the Bank’s official website.
The NDB President is elected on a rotational basis from one of the founding members, and there are four Vice Presidents from each of the other four founding members. Kamath, from India, is the first elected president of the NDB. The New Development Bank has an initial subscribed capital of USD 50 billion and an initial authorized capital of USD 100 billion. The initial subscribed capital is be equally distributed among the founding members. The payment of the amount initially subscribed by each founding member to the paid-in capital stock of the Bank will made in dollars in 7 installments. The bank aims to contribute to development plans established nationally through projects that are socially, environmentally and economically sustainable. Promote infrastructure and sustainable development projects with a significant development impact in member countries.
Establish an extensive network of global partnerships with other multilateral development institutions and national development banks. Build a balanced project portfolio giving a proper respect to their geographic location, financing requirements and other factors. The Agreement on the New Development Bank entered into force in July 2015, with the ratification of all five states that have signed it. The five founding members of the Bank include Brazil, Russia, India, China and South Africa. Expanding the NDB’s membership is considered by some experts to be crucial to its long-term development by helping boost the bank’s business growth. According to the Bank’s General Strategy: 2017-2021, the NDB plans to expand membership gradually so as not to overly strain its operational and decision-making capacity. The current distribution of shares between NDB member countries is presented in the following table.