The Asian Development Bank (ADB) has issued its first bond focused on biodiversity and nature conservation, raising A$150 million (US$100 million) to finance environmental projects across Asia and the Pacific. The 10-year bond was purchased by Japan’s Dai-ichi Life Insurance Company and arranged by Credit Agricole CIB, under ADB’s Theme Bonds for Sustainable Development programme. This new bond aims to support projects that address climate change, biodiversity loss, and pollution in the region.
The initiative is part of ADB’s broader efforts to mobilise private sector capital for sustainable development goals. ADB Treasurer Tobias Hoschka said, “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 mobilise additional private sector capital to protect, restore, and enhance sustainable management of biodiversity and nature mainstreaming.”
The bond aligns with global targets set by the United Nations Sustainable Development Goals and the Kunming-Montreal Global Biodiversity Framework, offering investors a secure investment opportunity through ADB’s AAA credit rating. Dai-ichi Life expressed its commitment to supporting sustainable finance through this investment.
“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 Kazuyuki Shigemoto, Managing Executive Officer at Dai-ichi Life.
ADB has been actively involved in promoting biodiversity protection, including initiatives like the Coral Triangle Initiative since 2009. The bank also launched the Nature Solutions Finance Hub and the Natural Capital Fund in 2023 to drive more nature-focused financing in the region. At the recent Conference of the Parties on Biological Diversity in Cali, Colombia, ADB announced this new bond as part of its ongoing efforts to integrate nature conservation into its financial strategies.
Credit Agricole CIB, which facilitated the bond’s issuance, highlighted its importance in supporting nature-positive projects. “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 Tanguy Claquin, Global Head of Sustainability at Credit Agricole CIB.
ADB plans to launch its Environment Action Plan 2024–2030, which will outline strategies for addressing climate change, biodiversity loss, and pollution across the region. Established in 1966, ADB is owned by 69 members, 49 of which are from the region, and it continues to work toward a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.