Vice President & Chief Operating Officer, New Development Bank: The bank’s total portfolio amounts to about $45 billion across more than 100 projects, with over half of the funds already disbursed.
The NDB aims to reach $5 billion in financings by 2025, with $1 billion allocated to new members Egypt and Bangladesh.
Director General, Public Sector Department, New Development Bank: The transport sector receives the most financing, followed by water and sewage infrastructure and clean energy.
Director General, Strategy, Policies and Partnerships Department, New Development Bank: The bank plans to mobilize resources and financing, through providing $30 billion in total volume of approved financing from its own balance sheet over 2022-2026
The second panel of the first New Development Bank (NDB) seminar in Egypt discussed the role of the New Development Bank (NDB) in mobilizing investments for Egypt's sustainable development strategies and explored various financial tools beyond traditional loans.
The panel, entitled, “NDB and Leveraging Investment for Egypt’s Sustainable Development Strategies,” provided insights into the innovative methods the NDB employs to finance development, particularly in enhancing investment for sustainable development strategies aligned with the UN's Sustainable Development Goals (SDGs).
Participants included Mr. Anil Kishora, Vice President & Chief Risk Officer, New Development Bank, Mr. Vladimir Kazbekov, Vice President & Chief Operating Officer, New Development Bank, Ms. Xiheng Jiang, Director General, Strategy, Policies and Partnerships Department, New Development Bank, Mr. Yury Surkov, Director General, Public Sector Department, New Development Bank, Mr. Bin Han, Director General, Private Sector and Non-Sovereign Guaranteed Transactions Department, New Development Bank, Mr. Zhongxia Jin, Director General, Treasury and Portfolio Management Department, New Development Bank, and Mr. Atter Hannoura, Director, PPP Central Unit Egypt; Alternate Director for the Constituency of Bangladesh, UAE and Egypt at the New Development Bank.
Mr. Vladimir Kazbekov expressed his pleasure at holding the first NDB seminar in Egypt, praising the Ministry of International Cooperation for its organization. He outlined the bank’s financing priorities for the upcoming period, noting that the total portfolio amounts to about $45 billion across more than 100 projects, with over half of the funds already disbursed.
He pointed out that the bank aims to increase the number of signed financings this year to 12 agreements worth $4.7 billion, focusing on sovereign projects and increasing the number of financing approvals.
Mr. Kazbekov highlighted that the NDB aims to reach $5 billion in financings by 2025, with $1 billion allocated to new members Egypt and Bangladesh. He emphasized the bank's commitment to increasing these allocations to meet member states' needs. He also noted the bank's focus on expanding local currency financings, which currently constitute only 23% of its portfolio, and aims to increase this percentage according to member states' needs. Additionally, the bank is exploring a new basket of currencies and new tools to finance projects in various countries.
Mr. Yuri Surkov explained that although member states are diverse, the bank has balanced resources so that all members receive almost the same amount of financing according to their specific needs while respecting state sovereignty in determining project priorities. He pointed out that the transport sector receives the most financing, followed by water and sewage infrastructure and clean energy. He also mentioned the NDB’s Project Preparation Fund, which provides grants for feasibility studies, offering up to $400,000 for different project studies.
Mr. Zhongxia Jin expressed gratitude for the seminar, confirming that the NDB focuses on providing low-cost financings. He discussed the bank’s credit rating, highlighting its high ratings from Standard & Poor's (AA+) and Fitch (AA), and mentioned the bank's programs focusing on local currency financing, including a program for India and another for Brazil, with total financings equivalent to $11 billion by the end of the year.
For his part, Mr. Anil Kishora revealed key features of the NDB’s strategy for 2022-2026, which aims to enhance cooperation among member states. This strategy focuses on mobilizing resources for infrastructure and sustainable development, with four main pillars: renewable and green energy, transport and infrastructure, digital and financial inclusion, and social infrastructure and climate issues. He emphasized that Egypt is one of the most important member states of the NDB.
Ms. Xiheng Jiang elaborated on the strategy’s details, aiming for the NDB to be known as a developmental bank providing quality financial solutions for infrastructure by 2026.
“The bank plans to mobilize resources and financing, through providing $30 billion in total volume of approved financing from its own balance sheet over 2022-2026, and co-financing 20% of projects with partner multilateral development banks over the same period,” she added.
Jiang also said that the plan includes providing 30% of total financing to non-sovereign operations over 2022-2026, and extending 30% of total financing in local currencies over 2022-2026.
She emphasized the bank’s focus on high-value projects in six areas, including infrastructure and digital infrastructure, with a special focus on projects that reduce carbon emissions and help communities adapt to climate change.
Mr. Bin Han highlighted the bank’s aim to accelerate support for non-sovereign operations, including infrastructure and sustainable development projects, mobilizing capital from the private sector without sovereign guarantees. He mentioned promising opportunities in Egypt, particularly in public-private partnerships and foreign investment projects.
Mr. Atter Hannoura discussed Egypt's current economic recovery and the bank’s plans to address present and future challenges, thereby enabling the bank to tackle the challenges faced by Egypt and other member states. He emphasized the importance of increasing local currency financings, which could significantly change the financing landscape.