On 20 July 2016, the 6th meeting of the NDB Board of Directors (BoD) was held in Shanghai, China. At the meeting, members of the BoD reviewed the Bank's work and provided valuable guidance for its future.
The Board was briefed on the recent achievements of the Bank, including the first Green Financial Bond issuance in China onshore bond market with an issue size of RMB 3 billion at a nominal interest rate of 3.07%. The members of the BoD expressed their firm support for the plans of the Bank to continue to issue bonds in future in national currencies.
At the meeting, the BoD approved financial assistance of USD 100 million for the construction of two hydropower generation plants with a total installed capacity of 49.8 MW in the Republic of Karelia in the Russian Federation, bringing the number of approved project to five. The Bank will provide the financing through two international financial institutions - Eurasian Development Bank (EDB) and International Investment Bank (IIB) for on-lending to the project. This continues the NDB's emphasis on financing green and renewable energy projects in its member countries.
Members of the BoD also discussed engagement of the NDB with credit rating agencies for the purpose of securing the highest possible international and national ratings for the Bank as well as plans for cooperation between the NDB and international organizations.
With the objective of promoting transparency, accountability and probity, the NDB BoD approved Interim Information Disclosure Policy of the Bank. The approval of this policy forms the basis for the Bank to be able to publicly disclose its relevant operational policies and other documents.
Following the 6th BoD meeting, the First Annual Meeting of the NDB Board of Governors (BoG) was also held on 20 July 2016. The BoG welcomed the progress made by the Bank in its first year of operations as an institution working to meet the aspirations of the people of its member countries.
"The participants had constructive discussions and charted the course of Bank's future work and development. They gave a positive assessment to the Bank's work thus far and addressed a number of important agenda items.
The BoG adopted several resolutions, which included the approval of the conclusion of two Memoranda of Understanding with Asian Development Bank and CAF, Development Bank of Latin America.
At the BoG meeting, the first Green Financial Bond issuance in Chinese Renminbi was highlighted as a milestone event for the Bank. The BoG also discussed the strategic direction of the Bank, including the development of a five-year strategy of the NDB.
The BoG decided that the next Annual Meeting of the Bank's BoG in 2017 will be held in India.
The New Development Bank was created with a vision to support and foster infrastructure and sustainable development initiatives in emerging economies. The Bank will complement the efforts of other existing financial institutions to realize the common goal of global growth. The founding members of the NDB - Brazil, Russia, India, China and South Africa (BRICS) - have paid in capital of USD 1.5 billion thus far as capital contributions. With the signing of the Headquarters Agreement with the Government of the People's Republic of China and Memorandum of Understanding with Shanghai Municipal People's Government in February 2016, the Bank became fully operational.