SHANGHAI, July 7 (Xinhua) -- Since its establishment eight years ago, the Shanghai-based New Development Bank (NDB) has gone through "an incredible journey" and will continue to deepen local currency and climate financing, said Leslie Maasdorp, vice president and chief financial officer of the NDB.
As the first global multilateral financial institution initiated wholly by developing countries, the NDB has made positive progress in institutional development, gradually increased its project portfolio, and boosted local currency financing, Maasdorp said in a recent interview with Xinhua.
Highlighting the bank's major achievements, Maasdorp said the NDB has approved 98 projects with a total value of 33.2 billion U.S. dollars, greatly contributing to the economic development of its member countries.
It has also deepened the green and sustainable credentials, as around 40 percent of the bank's projects are focused on climate change mitigation and adaptation.
Going forward, Maasdorp noted the bank will regard deepening local currency financing as the first priority, with the dual objective of raising resources in the most cost-effective manner as well as diversifying the funding sources.
Currently, local currency financing represents approximately 22 percent of the bank's portfolio, largely driven by Renminbi-denominated loans. For the 2022-2026 period, the bank's goal is that 30 percent of its project financing volume will be denominated in the national currencies of its members.
Another big priority is to increasingly focus on green financial instruments. According to Maasdorp, the bank has issued Renminbi green bonds several times since 2016 and issued its first USD green bond in April this year, demonstrating its commitment to sustainable capital markets.
Formally opened in July 2015, the NDB was established by the BRICS nations, namely Brazil, Russia, India, China, and South Africa. In 2021, the NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates, and Uruguay as its new member countries.
Maasdorp told Xinhua that the NDB is in discussions with other countries which are keen to join the bank.
"Given the strong interest from other emerging markets and developing countries across the world, the bank will indeed have that injection of fresh capital, which will enable us to further grow our balance sheet," he added.
He also noted that the bank hopes to practice more co-financing and intends to deepen its strategic partnerships with other multilateral financial institutions. ■
