ADB to boost climate financing with EUR-600m green bond issue

The Asian Development Bank (ADB) has raised EUR 600 million (USD 701m) from selling green bonds that will help it expand financing for climate change mitigation and adaptation projects, it announced on Thursday.

The seven-year green bond has an annual coupon of 0.35% and matures in July 2025. The issue, led by Bank of America Merrill Lynch, Citi and Credit Agricole CIB, attracted strong interest from the Europe, Middle East and Africa (EMEA) region with a distribution of almost 90%, while the rest was allocated among Asian investors. The raised funds will go to back low-carbon and climate resilient projects, the lender said.

ADB in 2015 unveiled plans to double annual climate financing to USD 6 billion by the end of this decade and now said it is on course to achieve that goal. Of the total amount, USD 4 billion will go for climate change mitigation through increased support for renewables, energy efficiency, sustainable transport and smart cities. The other USD 2 billion will go for adaptation projects.

The bank intends to raise around USD 23 billion from capital markets in 2018. Last year, it provided a record USD 4.5 billion for climate mitigation and adaptation projects globally.

(EUR 1.0 = USD 1.168)

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