ADB sells inaugural $232.2-million Clean Energy bonds for AsPac

MANILA, Philippines - Multilateral lender Asian Development Bank (ADB) has sold $232.2 million worth of Clean Energy bonds to support its renewable energy and energy efficiency projects in Asia and the Pacific, the bank said in a statement yesterday.

ADB’s inaugural Clean Energy bond issue follows the successful sale in April of its first Water Bond that is supporting ADB’s work in the water sector in Asia and the Pacific.

As part of its energy policy, ADB is targeting $2 billion a year in clean energy investments by 2013. ADB will provide assistance to clean energy projects in an amount at least equal to the amount raised by the latest bond issue.

“The healthy sale of the Clean Energy bonds shows a clear desire among Japanese investors to see funds committed to clean energy projects that will help improve the environment but ensure sustainable growth in the region,” said ADB treasurer Thierry de Longuemar.

Rapid economic expansion in Asia and the Pacific has caused rising greenhouse gas emissions and put heavy pressure on energy resources. At the same time, millions of people in many parts of the region have no access to basic energy, undermining their livelihoods and holding back development in the region, the ADB noted.

The bond comprises four tranches; four-year bonds denominated in Australian dollars, four-year and seven-year bonds in Brazilian real, and seven-year bonds in Turkish lira.

The transaction was lead managed by HSBC Securities (Japan) Ltd. and the bonds were distributed by more than 20 securities firms.

Based in Manila, ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. 

Established in 1966, it is owned by 67 members – 48 from the Asia Pacific region. In 2009, it approved a total of $16.1 billion in financing operations through loans, grants, guarantees, a trade finance facilitation program, equity investments and technical assistance projects. 

ADB also mobilized co-financing amounting to $3.2 billion.