The New Development Bank (NDB) is a multilateral development bank, established by the BRICS nations (Brazil, Russia, India, China, and South Africa). The NDB was created to mobilize resources for infrastructure and sustainable development projects in emerging market economies and developing countries, complementing the efforts of existing multilateral and regional financial institutions. The agreement to establish the NDB was signed at the 6th BRICS Summit in Fortaleza, Brazil, on July 15, 2014, and the bank became operational in 2015. The NDB was conceived to address the significant financing constraints faced by emerging economies in bridging infrastructure gaps and meeting sustainable development needs, offering an alternative to traditional Western-dominated financial bodies like the World Bank and IMF.
The NDB's mechanism is defined in its Articles of Agreement, which state that it supports public or private projects through loans, guarantees, equity participation, and other financial instruments. A key feature is the equal distribution of the initial subscribed capital of US$50 billion among the five founding members, ensuring equal voting power, which contrasts with the weighted voting structures of the World Bank and IMF. The NDB also focuses on lending in members' local currencies to mitigate exchange-rate risks, and it has issued bonds in currencies like the Renminbi and Rand. The NDB connects directly to the BRICS group and is often discussed alongside the Asian Infrastructure Investment Bank (AIIB) as part of a trend of non-Western-led multilateral finance. Since its founding, the NDB has expanded its membership beyond the original five, admitting countries like Bangladesh, the United Arab Emirates, Egypt, and Uruguay between 2021 and 2023. A recent change occurred in March 2022, when the NDB put all new transactions with Russia on hold, citing "sound banking principles" following geopolitical events. The bank's General Strategy for 2022–2026 aims to extend 30% of its total financing in local currencies and direct 40% of total approvals to projects contributing to climate change mitigation and adaptation.