ADB issues first biodiversity and nature bond
THE Asian Development Bank (ADB) said it recently issued its first biodiversity and nature bond to finance projects to mitigate climate change and biodiversity loss.
The $150-million 10-year bond was purchased by the Dai-ichi Life Insurance Co., Ltd. and arranged by Credit Agricole CIB, the ADB said in a statement.
It was issued under the bank’s Theme Bonds for Sustainable Development program.
“Investing in nature is emerging as one of the most impactful ways to combat climate change, biodiversity loss, and pollution,” ADB Treasurer Tobias C. Hoschka said in a statement.
“Through ADB’s first biodiversity and nature bond, we are pleased to mobilize additional private sector capital to protect, restore and enhance sustainable management of biodiversity and nature mainstreaming.”
The bank’s theme bonds for sustainable development help mobilize private capital in support of the United Nations Sustainable Development Goals and the Kunming-Montreal Global Biodiversity Framework.
It also offers investors an investment covered by the ADB’s ‘AAA’ credit rating. — Beatriz Marie D. Cruz