New Development Bank and Bank of Huzhou Sign Loan Agreement for Sustainable Infrastructure Projects

On May 28, 2024, the New Development Bank (NDB) and the Bank of Huzhou (BOH) signed a Loan Agreement with the objective of advancing sustainable infrastructure development in Zhejiang Province, China.

The signing ceremony took place at the NDB Headquarters in Shanghai and it was participated by H.E. Mrs. Dilma Rousseff, NDB President, Mr. Vladimir Kazbekov, NDB Vice President and Chief Operating Officer, Mr. Anil Kishora, NDB Vice President and Chief Risk Officer, Mr. Zhou Qiangwu, NDB Vice President and Chief Administrative Officer, Mr. Hupeng Hong, Mayor of Huzhou City and Mr. Fengjie Fang, Chairman of BOH.

Under the Loan Agreement, NDB will provide RMB 357.55 mln (USD 50 mln equivalent) to BOH for financing a range of sustainable infrastructure development projects in Zhejiang Province. NDB’s loan to the Bank of Huzhou will be on-lent to private sector borrowers for financing sustainable infrastructure projects in the sectors of clean energy and energy efficiency, transportation and logistics, as well as water and sanitation.

These projects are aimed at establishing a clean, low-carbon, safe, and efficient modern energy system, creating a 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.

This is the first non-sovereign loan provided by NDB in China, highlighting the Bank’s commitment to mobilizing private sector resources and capital in the local market. The transaction aligns with China’s national strategy to promote sustainable development and green finance.

In line with NDB’s General Strategy for 2022–2026, the signed Loan Agreement facilitates private sector participation in addressing infrastructure backlogs and scaling up investments, as well as enhancing development impact in the local market. 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 H.E. Mrs. 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. NDB is steadily advancing towards our goal of allocating 30% of overall financing to non-sovereign operations between 2022 and 2026,” stated Mr. Vladimir Kazbekov, NDB VP & COO.

“Huzhou City will fully implement President Xi Jinping’s important directives, leverage its comparative advantage in green financial reform, and accelerate the comprehensive green transformation of its economic and social development to achieve sustainable development. I hope the signing between NDB and Bank of Huzhou will serve as a starting point for deeper collaboration in green finance and sustainable development,” stated Mr. Hupeng Hong, the Mayor of Huzhou City. He also expressed his gratitude to NDB for their support and trust.

Background Information

New Development Bank

NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries.

For more information on NDB, please visit www.ndb.int

Bank of Huzhou

BOH, formerly known as Huzhou City Commercial Bank Co., Ltd, was established in June 1998. BOH’s largest ultimate shareholder is the People’s Government of Huzhou. It pioneers in green finance and provides inclusive finance. As a regional city commercial bank, BOH is committed to its strategic positioning of “serving local development, small and medium-sized enterprises, and urban and rural residents.” BOH deeply roots in the local community, focusing on supporting the sustainable development of the local economy with specialized green financial products.

For more information on BOH, please visit www.hzccb.com