NDB funds COVID-19 reflief in Brazil

NDB funds COVID-19 reflief in Brazil

Loans Economy & Policy Brazil Russia India China Africa Coronavirus

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The New Development Bank (NDB) said Tuesday that it approved a $1 billion loan for a basic income guarantee program that aims to cover roughly 5 million people in Brazil during the COVID-19 pandemic.

The transaction is the largest loan that NDB has granted in Brazil, raising the share of loan approvals in the country to 13% from 8.4%, the Shanghai-based development bank said in a press release.

NDB has now granted a total of $4 billion in loans to combat COVID-19, following similar deals in China, India and South Africa, it added.

The Brazilian government has already received $4 billion in financing to offset the effects of the pandemic from the International Bank for Reconstruction and Development (IBRD), the Inter-American Development Bank (IDB), Latin American development bank CAF, German development bank KfW and French development agency AFD, according to NDB.

NDB completed its first benchmark-sized bond sale in mid-June to raise money for its COVID-19 response, pricing $1.5 billion worth of three-year notes with a coupon of 0.625%.

The development bank was formed by Brazil, Russia, India, China and South Africa in 2014 to fund infrastructure and sustainable development projects in its member nations and other emerging markets. It elected Brazilian economist Marcos Troyjo in late May as president for a five-year term.