ADB issues USD 1.25bn of green bonds

Author: katheriine_0x. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.

The Asian Development Bank (ADB) today announced the issuance of USD 1.25 billion (EUR 1.06bn) in green bonds for climate change mitigation and adaptation projects.

The bank raised USD 750 million with a five-year bond with an annual coupon of 1.875%, and USD 500 million with a 10-year bond with a coupon rate of 2.375% per year. Bank of America Merrill Lynch, Credit Agricole CIB, and JP Morgan were lead managers.

“We have found the dual-pronged approach taken today to be an efficient means of reaching ethical investors active at different segments of the yield curve. This approach means that ADB is reaching an increasing number of investors who understand the importance of the green label,” said ADB Treasurer Pierre Van Peteghem.

The table shows who subscribed for the different bonds.

DISTRIBUTION BY REGION	5-year bond	10-year bond
Asia	24%	13%
EMEA	29%	69%
Americas	47%	18%
DISTRIBUTION BY INVESTOR TYPE
Central banks and official institutions	38%	25%
Banks	31%	52%
Fund managers	31%	23%

ADB in 2015 unveiled plans to double annual climate financing to USD 6 billion by the end of this decade. Of that, USD 4 billion will go for climate change mitigation through increased support for renewable, energy efficiency, sustainable transport, and smart cities. The other USD 2 billion are for adaptation projects.

The bank intends to raise between USd 27 billion and USD 30 billion from capital markets this year.

According to the website of the Climate Bonds Initiative (CBI), green bonds issuance in the first seven months of 2017 has reached USD 54.4 billion.

(USD 1 = EUR 0.85)

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