The BRICS New Development Bank (NDB) on Wednesday signed its first loan agreement, providing a 525 million yuan (75 million U.S. dollars) loan for a solar project in China.

The loan was given to Shanghai Lingang Distributed Solar Power Project, with a maturity length of 17 years, under an agreement signed between NDB, the Ministry of Finance and the Shanghai municipal government.

"The solar power project is a good example of forward-looking and green investment," said K.V. Kamath, president of NDB.

Shi Yaobin, China's vice finance minister, said that under the global sluggish economic recovery, NDB can play its role in providing fund support for member states and expand global demand.

The project by Shanghai Lingang Hongbo New Energy Development is a solar photovoltaic power plant with total capacity of 100 MW.

NDB, which formally opened in Shanghai July last year, was created with the objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.

The bank approved its first package of loans worth 811 million U.S. dollars in April.