Building a Twenty-First Century Development Bank

Global Bank is a full-fledged private sector global development bank in formation (the “Global Bank” or the “Bank”) – the world’s second global development bank – positioned next to the World Bank and next to the preeminent regional development banks (MDBs).

• The Bank combines the characteristics of a multilateral development bank with those of a private financial institution.
• The Bank’s main goals are promoting sustainable economic development; ending extreme poverty by 2030 and promoting share prosperity.
• The Bank finances primarily public sector infrastructure projects and sustainable development through the provision of sovereign loans to developing countries.
• The Bank consists of both a hard-loan-window and a soft-loan-window. The-hard-loan-windows provide loans at market-based rates to lower and middle-income developing countries. The-soft-loan-windows provide loans on a concessional basis to the poorest countries unable to borrow international capital markets.
• The Bank’s financial objective is not to maximize profit but to earn adequate income to ensure its financial strength and to sustain its development activities.
• The Bank charges market-based rates or near-market-based rates for its loans.
• The Bank’s primary objective with respect to managing funding risk is to achieve and maintain its triple-A credit ratings and thereby maintain access to market funding as needed at the lowest possible cost. In line with this, Bank makes extensive use of financial instruments, including derivatives.

Because of the Bank’s strict statutory lending limits and gearing ratio adopted by the Bank, the Bank is one of the most prudent and conservative financial institutions in the world, positioned next to the World Bank.

The term "multilateral development banks" includes the World Bank Group, the European Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Multilateral Investment Guarantee Agency, the African Development Bank, the African Development Fund, the Asian Development Bank, the Inter-American Development Bank, the Bank for Economic Cooperation and Development in the Middle East and North Africa, and the Inter-American Investment Corporation.