New Development Bank

The New Development Bank (NDB) is a multilateral development bank created by the five original BRICS members: Brazil, Russia, India, China and South Africa. Its central mandate is to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries. It complements, rather than replaces, existing multilateral and regional financial institutions.

Core development mandate

The Agreement on the New Development Bank, 2014 links the Bank's financing directly to global growth and development.

• It finances projects that address infrastructure needs and support sustainable development.
• Its mandate extends beyond BRICS to other emerging market economies and developing countries that become eligible under its institutional framework.
• It may support projects involving more than one member, thereby encouraging regional connectivity and economic integration.

How the mandate is implemented

The NDB may deploy multiple financial and developmental instruments rather than functioning only as a conventional lender.

• It may support public or private projects through loans, guarantees, equity participation and other financial instruments.
• It may provide technical assistance for project preparation and implementation.
• It may cooperate with international organisations, national development banks, financial institutions and public or private entities.

Institutional design and significance

The NDB began with an authorised capital of US$100 billion and an initial subscribed capital of US$50 billion, shared equally among the five founding members.

• Equal founding subscriptions reflected the principle of institutional equality among the original BRICS members.
• Its project-oriented financing expands development-finance options for emerging and developing economies.
• By complementing established development banks, it contributes to a more diversified system of global development finance.