Bangladesh, located in South Asia along the Bay of Bengal, is home to approximately 166 million people. It has been one of the fastest-growing economies in the world, with its gross domestic product (GDP) expanding at an average annual rate of around 6 percent over the past two decades. Since 2015, Bangladesh has been classified as a lower-middle-income country.
In 2016, the Government of Bangladesh approved eight mega-projects in infrastructure and energy sectors, valued at USD 20.5 billion, to support sustained and rapid economic development. However, only USD 2.3 billion of this amount was financed through domestic resources. The shortage of internal financial capacity led the government to seek international financing, prioritizing institutions such as the World Bank, the Asian Development Bank (ADB), and the Islamic Development Bank (IsDB).
The government also introduced the “Vision 2041” plan aimed at achieving higher levels of economic development and eradicating extreme poverty. Achieving these goals requires substantial investment in energy, infrastructure, and connectivity networks, while domestic financing capacity remains limited.
In an official interview, Bangladesh’s Minister of Finance identified unprecedented development needs, extensive financing requirements, and the implementation of large-scale projects as the two primary motivations for joining the New Development Bank (NDB).
India’s support for Bangladesh’s accession to the NDB was a key factor in the process. The invitation extended by the Prime Minister of India to the Prime Minister of Bangladesh in 2019 marked the beginning of the formal accession pathway.
In September 2021, Bangladesh became the first country outside the BRICS group to officially join the Bank as a full member.
The maximum subscribed capital allocated to Bangladesh was set at USD 942 million, granting the country 1.79 percent of the total voting power.
Bangladesh is required to pay USD 188.4 million in paid-in capital over a seven-year period and has committed USD 754 million as callable capital.
At the time of accession, Bangladesh’s credit rating was assessed as Ba3 by Moody’s and BB- with a stable outlook by Fitch Ratings.
Following its membership in 2021, Bangladesh’s Ministry of Finance requested various ministries to propose suitable projects for NDB financing.
Although financing of up to USD 300 million per project was available, only one project valued at USD 245 million was submitted.
