The New Development Bank (NDB) will now open its office in the Gujarat International Finance Tech (GIFT) city in May 2022. The India office will help in identifying suitable projects and check out to form a pipeline of potential financing for the bank.
NDB is additionally expected to partner with the newly launched National Bank for Financing Infrastructure and Development (NBFID), during a bid to support crucial infrastructure projects across India.
The New Development Bank was founded by BRICS countries (Brazil, Russia, India, China, and South Africa) in 2014. It aimed at mobilizing and utilising resources for infrastructure and sustainable development projects in BRICS and emerging markets. The bank became operational in 2015. It is headquartered in Shanghai, China and is equally owned by all the founding members.
NBFID was founded as a company body, with an authorised share capital of 1 lakh crore rupees. it was technically established with the motive to lend, invest or attract investments directly or indirectly for infrastructure projects located entirely or partly in India. It seeks to facilitate the event of the marketplace for bonds, loans and also as derivatives for infrastructure financing.
NBFID may raise money within a variety of loans or otherwise in Indian rupees and foreign currencies. It may secure money by issuing and selling various financial instruments like bonds and debentures.
The institution will borrow money from the central bank, Reserve Bank of India (RBI), mutual funds, scheduled commercial banks and multilateral institutions like the International Bank for Reconstruction and Development (IBRD) and Asian Development Bank (ADB).
NBFID was established with an aim to extend loans and advances for infrastructure projects to take over or refinance such existing or previous loans. It also aimed at attracting investment from private sector investors and institutional investors for projects.
It will organise and facilitate foreign nationals’ participation in infrastructure and development projects. It will negotiate with various government authorities and to provide consultancy services in infrastructure financing.