Manila (TDI): The Asian Development Bank (ADB) has issued its inaugural biodiversity and nature-focused bond, aiming to fund a range of environmental projects across Asia and the Pacific.
The A$150 million (US$100 million) bond, with a 10-year maturity, was acquired by Japan’s Dai-ichi Life Insurance Company and arranged by Credit Agricole CIB under ADB’s Theme Bonds for Sustainable Development program, in collaboration with its Environment group.
“Investing in nature is proving to be among the most impactful methods to address climate change, biodiversity degradation, and pollution,” stated ADB Treasurer Tobias Hoschka, adding that this new bond seeks to mobilize private sector capital to support sustainable biodiversity initiatives.
The biodiversity and nature bond reflects ADB’s commitment to advancing the United Nations Sustainable Development Goals (SDGs) and the Kunming-Montreal Global Biodiversity Framework, ADB said in a statement.
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By leveraging its AAA credit rating, ADB aims to attract private capital to projects that protect ecosystems, restore biodiversity, and promote nature-based solutions, it added.
Dai-ichi Life’s Chief General Manager, Investment, Kazuyuki Shigemoto, expressed the company’s commitment to sustainable investments, saying, “We strongly support ADB’s Biodiversity and Nature Bond, which will finance initiatives aimed at nature conservation, biodiversity protection, and enhancing community livelihoods.”
ADB’s Environmental Initiatives
ADB’s environmental initiatives have a longstanding foundation, including its partnership in the Coral Triangle Initiative since 2009, which protects critical marine habitats, the bank noted.
In 2021, ADB and other multilateral development banks released the Joint Statement on Nature, People, and Planet.
Recent efforts include the 2023 launch of the Nature Solutions Finance Hub and the Natural Capital Fund in collaboration with the Global Environment Facility.
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This milestone bond was announced at the 16th Conference of the Parties to the Convention on Biological Diversity in Cali, Colombia, where ADB also shared plans to release its Environment Action Plan 2024–2030: Towards a Nature Positive Asia and the Pacific, outlining strategies to combat climate change, preserve biodiversity, and address pollution.
Tanguy Claquin, Global Head of Sustainability at Credit Agricole CIB, commended ADB’s commitment to sustainable finance, saying, “The Biodiversity and Nature Bond represents significant progress in nature solution financing, promoting biodiversity protection, economic growth, and community inclusion.”
Established in 1966, ADB is owned by 69 members, with 49 from the region, and remains dedicated to fostering a sustainable and resilient Asia and the Pacific while working to eradicate poverty.
