September 20 (Renewables Now) - The Asian Development Bank (ADB) has issued a USD-750-million (EUR 640m) 10-year global green bond, raising funds to support climate change mitigation and adaptation projects in Asia and the Pacific, it said today.
The bond, maturing on September 26, 2028 and offering a coupon rate of 3.125% per year payable semi-annually, was priced at 98.982% to yield 16.9 basis points over the 2.875% US Treasury notes due August 2028. Bank of America Merrill Lynch, Citi and HSBC lead-managed the deal.
Banks bought 31% of the bond, insurance and pension funds 25%, central banks and official institutions 24% and fund managers 20%. In terms of geographic distribution, 46% was sold in the Europe, Middle East and Africa region, 28% in the Americas and 26% in Asia.
In 2015, ADB pledged to double its annual climate financing to USD 6 billion by 2020, or around 30% of its overall financing. The figure will include USD 4 billion for mitigation via support for renewable energy, energy efficiency, sustainable transport and building smart cities, and USD 2 billion for adaptation.
(USD 1 = EUR 0.854)