The headquarters of the new BRICS Development bank will be in Shanghai, China. The first president will be appointed by India. The announcement was made on Tuesday (July 15) by President Dilma Rousseff after meeting with the heads of state of the other BRICS countries (Russia, India, China, and South Africa).

The authorized capital of the bank is $100 billion. An initial $50 billion will be pooled with equal contributions from the five countries. The first regional office of the bank will be located in South Africa, the first chairman of the board of governors will be from Russia, and the first chairman of the board of directors will be from Brazil.

“The bank provides an alternative to the infrastructure funding needs in developing countries, covering shortages in major international financial institutions,” Rousseff said.

A memorandum was also signed during the Summit establishing cooperation between BRICS-wide export credit insurers, as well as an agreement for cooperation in innovation among development banks of the five countries.