JOHANNESBURG, Sept 15 – South Africa has signed a $1 billion loan agreement with the New Development Bank (NDB) to support upgrades to municipal infrastructure, according to the National Treasury.
The financing has a 16-year maturity and includes a three-year grace period, giving the government additional time before principal repayments begin.
The loan carries an interest rate of Daily SOFR plus 1.18508%, according to Treasury details. The funding is intended to support improvements to municipal infrastructure as South Africa seeks to address infrastructure needs at the local-government level and strengthen the delivery of essential services.
BRICS Bank Expands Development Financing
The New Development Bank was established in 2015 by the original BRICS members, Brazil, Russia, India, China and South Africa, with a mandate to finance infrastructure and sustainable development projects in emerging markets.
The institution has subsequently expanded its membership beyond the five founding countries, broadening its potential financing base and geographic reach.
For South Africa, the latest agreement provides access to long-term development financing through a multilateral institution established by the country and its BRICS partners.
The $1 billion facility adds to efforts to mobilize external capital for infrastructure investment while providing municipal projects with access to financing structured over a relatively long repayment period.
