EDB and New Development Bank Sign Loan Agreement for US $50 million to finance the construction of hydroelectric power plants in Karelia and other ‘green’ projects
Moscow, 15 August 2017. The Eurasian Development Bank (EDB) and the New Development Bank (NDB) signed a $50 million loan agreement. The proceeds of the loan will be used to finance the construction of hydroelectric power plants, Beloporozhskaya HPPs 1 and 2, implemented jointly with the International Investment Bank, and other green energy projects.
On behalf of the EDB the Agreement was signed by Managing Director for Assets and Liabilities, Dmitry Ladikov-Roev, and on behalf of the NDB – by Vice President, COO, Xian Zhu. The maturity of the loan is 12 years.
According to the loan agreement, the loan proceeds will be used to finance the construction of hydroelectric power plants, Beloporozhskaya HPPs 1 and 2 in the Republic of Karelia with the total capacity of 50 MW. These funds can also be used to finance projects for improving the environmental conditions and strengthening the social protection. Such projects include renewable energy, energy efficiency, sustainable water management, climate change, pollution prevention and other initiatives. All the above projects will be implemented on the territory of the Russian Federation.
“EDB’s cooperation with the New Development Bank is important for the Russian economy. Financing the HPP construction in Karelia is the first small-scale power generation project of this calibre in Russia and the first project arranged by attracting funds from the BRICS Bank in our country,” said Managing Director for Assets and Liabilities at the EDB Dmitry Ladikov-Roev, adding that “green projects are a key element of successful environmental policy implemented by the Government of the Russian Federation. This financing is also fully aligned with the mission and strategy of the EDB, acting as an environmentally responsible development institution.”
Additional Information:
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
The New Development Bank (NDB) was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks, as well as other institutions and market players.
International Investment Bank (IIB) founded in 1970. Current shareholders of the Bank include: Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam. The Bank has undergone major modernisation since late 2012 and is rated BBB (outlook stable) by S&P, Baa1 (outlook positive) by Moody’s, BBB (outlook stable) by Fitch and A (outlook stable) by Dagong.
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