The New Development Bank (NDB) has finalised a groundbreaking loan agreement to support sustainable infrastructure development in Zhejiang Province, China. This marks the NDB’s first non-sovereign loan within China, underscoring its commitment to financing infrastructure projects in emerging markets.
Under this agreement, the NDB will extend approximately 358 million yuan ($50 million) to the Bank of Huzhou. These funds will be allocated to various sustainable infrastructure projects in Zhejiang, focusing on sectors such as clean energy, transportation, and water and sanitation.
The loan to the Bank of Huzhou will enable private sector borrowers to access crucial financing for infrastructure projects, addressing critical infrastructure needs and promoting sustainable development in the region.
In a statement, the bank said these projects aim to create more efficient transportation connections with surrounding key cities, and protecting the water ecological environment in the Yangtze River Delta Urban Agglomeration, in alignment with Huzhou City’s development strategy.
Speaking at the signing ceremony in Shanghai, Vladimir Kazbekov, NDB Vice President and Chief Operations Officer, emphasised the bank’s dedication to sustainable development projects through non-sovereign operations. He said the NDB is steadily advancing towards its goal of allocating 30% of overall financing to non-sovereign operations between 2022 and 2026.
The loan also demonstrates NDB’s commitment to using local currency to support its member countries.
“This contract represents the beginning of an important partnership with the Bank of Huzhou, an institution that combines differentiated expertise with in-depth knowledge of the local reality. No other partner would have the same ability to select the best projects and the best use of resources. It also brings the full support of the Municipality of Huzhou,” said Dilma Rousseff, NDB President.
“With the signing of the Loan Agreement with Bank of Huzhou, NDB has embarked on providing non-sovereign loans in China. It highlights NDB’s dedication to support private sector in financing infrastructure and sustainable development projects that align with the development agendas of our member countries.
