ADB Issues Its First Biodiversity And Nature Bond

The Asian Development Bank (ADB) recently issued its first biodiversity and nature theme bond to finance a pool of eligible projects across Asia and the Pacific. The A$150 million (equivalent to US$100 million), 10-year issue was purchased by the Dai-ichi Life Insurance Company, Limited of Japan and arranged by Credit Agricole CIB. The bond was issued under ADB’s Theme Bonds for Sustainable Development program, in coordination with its Environment group.

“Investing in nature is emerging as one of the most impactful ways to combat climate change, biodiversity loss, and pollution. 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,” said ADB Treasurer Tobias Hoschka.

ADB’s theme bonds for sustainable development act as a key vehicle to mobilize private capital in support of the United Nations Sustainable Development Goals and the Kunming-Montreal Global Biodiversity Framework while offering investors with a safe and attractive investment opportunity through ADB’s AAA credit rating.

“Dai-ichi Life is pleased to have invested in the first Biodiversity and Nature Bond issued by ADB. We are committed to creating a positive impact on society by investing in assets that contribute to solving social issues. We strongly support ADB’s Biodiversity and Nature Bond that will finance projects aimed at nature-based solutions, including biodiversity protection, nature mainstreaming, as well as supporting the livelihoods of the communities,” said Dai-ichi Life Managing Executive Officer and Chief General Manager, Investment Kazuyuki Shigemoto.

ADB has long been committed to protecting biodiversity and nature. It is a founding partner of the Coral Triangle Initiative established in 2009, safeguarding one of the world’s most critical marine ecosystems. At the Glasgow Climate Community of Practice in 2021, ADB along with nine other multilateral development banks, issued the Joint Statement on Nature, People, and Planet. In 2023, ADB launched the Nature Solutions Finance Hub along with partners, as well as the Natural Capital Fund, in partnership with the Global Environment Facility. The new ADB’s Biodiversity and Nature Bond was announced at the 16th Conference of the Parties of the Convention on Biological Diversity in Cali, Colombia.

ADB will soon launch its Environment Action Plan 2024–2030: Towards a Nature Positive Asia and the Pacific that will create a road map for its activities to tackle climate change, biodiversity loss, and pollution.

“Credit Agricole CIB is very pleased to assist ADB in its sustainable finance journey since inception. We assisted ADB through Green Finance and other theme bonds over the last years. Launching the Biodiversity and Nature Bond is a great achievement to promote nature solution finance encompassing goals related to fighting against nature and biodiversity loss, promoting local economy growth, and inclusion,” said Credit Agricole CIB Global Head of Sustainability Tanguy Claquin.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.