Sep 8, 2015

• Document was signed today by the President of the BNDES, Mr. Luciano Coutinho, and Mr. Paulo Nogueira Batista, Brazilian Vice-President of the NDB

The Brazilian Development Bank (BNDES) and the New Development Bank of the BRICS signed a memorandum of understanding aimed at strengthening cooperation between the Brazilian bank and the financial institution which comprises Brazil, Russia, India, China and South Africa.

The document was signed on September 8 by the President of the BNDES, Mr. Luciano Coutinho, and Mr. Paulo Nogueira Batista, one of the vice-presidents of the New Development Bank (NDB). The ceremony was held at the BNDES’ headquarters in Rio de Janeiro.

The main highlights in the memorandum are efforts to exchange information and share experiences related to support for infrastructure projects and initiatives fostering sustainable development.

The document signed by the BNDES and the NDB does not oblige institutions to necessarily perform joint operations. However, it does pave the way to allow banks to strengthen their relations and to work on initiatives of mutual interest, including partnerships to finance projects.

The NDB, also known as the BRICS Development Bank, seeks to provide support for infrastructure and sustainable development projects in member-countries and other emerging economies. The Bank is headquartered in Shanghai, China, with a regional representative office in South Africa. Its was made official during the Sixth Summit of the BRICS, which was held in Fortaleza, in the state of Ceará, Brazil, on July 15, 2014.

The NDB’s initial capital is US$ 50 billion, which has already been paid-in by the member-countries. The institution’s authorized capital, however, totals US$ 100 billion. In comparison, the Inter-American Development Bank has nearly US$ 35 billion in capital, while the World Bank totals US$ 40 billion.

The NDB plans to provide support for efforts from multilateral and regional financial institutions focusing on supporting their projects. The bank’s bylaws foster the use of diversified instruments to reach its goals. The NDB may finance public or private projects through loans, guarantees, corporate stakes and other financial instruments.

The Bank is willing to operate with other multilateral financial institutions, national development banks in member-countries, and commercial banks so as to boost their operations.