ADB Raises €600 Mn via Green Bond to Spur Climate Financing

Further, the bond has a coupon rate of 0.35 percent p.a. payable annually and a maturity date of July 16, 2025. It was priced at 99.924 percent to yield 43 basis points (BPS) over the DBR 0.5 percent February 2025.

Philippines-based Asian Development Bank (ADB) has raised €600 million to help finance climate change mitigation and adaptation projects through issuing 7-year green bond.

From the proceeds of the green bond, ADB will support low-carbon and climate resilient projects funded through it’s ordinary capital resources and used in its non-concessional operations.

Further, the bond has a coupon rate of 0.35 percent p.a. payable annually and a maturity date of July 16, 2025. It was priced at 99.924 percent to yield 43 basis points (BPS) over the DBR 0.5 percent February 2025.

Commenting on the development, ADB, Treasurer, Pierre Van Peteghem said, “Since the inaugural US dollar denominated green issue in 2015, ADB has steadily expanded its green bond offerings, having pioneered the dual-tranche format for supranational green bonds in 2016 and issuing its maiden green Indian rupee-linked bond in 2017.”

“We are very pleased to accommodate the strong demand for our green bonds from euro investors with last night’s offering, which allowed us to both tighten price guidance while increasing the issue size for our first euro denominated benchmark green bond,” Peteghem added.

Besides, the issue achieved strong primary market distribution with nearly 90 percent placed in Europe, the Middle East, and Africa (EMEA); and 10 percent placed in Asia.

Moreover, 39 percent of bonds went to central banks and official institutions; 12 percent to banks; and 48 percent to fund managers, insurance, pension funds, and others.

In 2018, ADB mulls to raise around USD 23 billion from the capital markets.