The New Development Bank (NDB), set up by the five-member BRICS bloc of countries, plans to lend between USD 250 million (EUR 219.5m) and USD 300 million for solar projects in the Indian state of Karnataka, The Financial Express said Monday.A board meeting to discuss the bank’s first loan to India has been scheduled for April 14. The financing, which will be allocated for governmental photovoltaic (PV) schemes, will ultimately diversify the country’s options to raise long-term capital for infrastructure development, an unnamed source told the newspaper.
The US dollar-denominated credit line will have a 20-year term. It will bear an interest of London Interbank Offered Rate (LIBOR) plus a spread, according to the report.The Karnataka solar scheme was chosen among three projects recommended for consideration by NDB, with the other two concerning irrigation in Rajasthan and road construction in Madhya Pradesh. The required funding for the PV development will be secured under a co-financing model with state-run Canara Bank by April-May.
Apart from the loan to India, NDB’s board is also expected to sanction loans for each of its founding members — Brazil, Russia, China and South Africa — whilst approving lending, borrowing and environmental policies.