The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa) to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.
As one of its recent projects, the New Development Bank which covers Brazil, Russia, India, China and South Arica will issue bonds worth $355 million to $384 million to raise funds for renewable energy projects in the member countries.
The demand for renewable energy funding in 4 of the 5 member countries is among the highest in the world. Although Brazil, India, and South Africa are already running very successful renewable energy project auction programs, China has the world’s most ambitious renewable energy targets. In hindsight, all these countries have experienced a noticeable increase in interest and investment from foreign project developers, which has led to increased competition driving the tariffs to historic lows.
The growing impact investment market provides capital to support solutions to the world’s most pressing challenges in all sectors of the economy and there are ways governments can empower such investments; ‘Green bonds’ have emerged as one of the primary choice for banks, financial institutions, and project developers to raise funds for clean energy projects.
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