South Africa Signs $405 Mln New Development Bank Loan for Infrastructure Projects
South Africa has signed two loan agreements worth a combined $405 million with the New Development Bank, its National Treasury said.
The BRICS-backed lender will provide a $200 million loan for a planned 488-bed tertiary hospital in Limpopo province aimed at expanding access to specialised healthcare services.
A further $205 million loan will fund the Magalies Bulk Water Supply Scheme, aimed at easing water shortages in six municipalities across Limpopo and North West provinces where demand exceeds available supply.
The loans mature in 10 years, including a four-year grace period, and bear interest at the daily SOFR (Secured Overnight Financing Rate) rate plus 0.93508 percentage points.
The multilateral development bank was established in 2015 by BRICS members Brazil, Russia, India, China and South Africa to fund infrastructure and sustainable development projects in emerging markets. In 2021 it expanded to include non-founding members.
Reuters