ADB Issues First Biodiversity and Nature Bond to Fund Sustainable Projects in Asia and the Pacific

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

The Asian Development Bank (ADB) has launched its first-ever biodiversity and nature theme bond, raising A$150 million (approximately US$100 million) to finance a range of eligible projects throughout Asia and the Pacific. The bond, which has a 10-year maturity, was acquired by Dai-ichi Life Insurance Company from Japan and arranged by Credit Agricole CIB. This issuance is part of ADB’s Theme Bonds for Sustainable Development program, in collaboration with its Environment group.

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

ADB's theme bonds serve as a crucial mechanism for attracting private investment to support the United Nations Sustainable Development Goals (SDGs) and the Kunming-Montreal Global Biodiversity Framework. Investors benefit from a secure and appealing investment option backed by ADB's AAA credit rating.

Kazuyuki Shigemoto, Managing Executive Officer and Chief General Manager of Investment at Dai-ichi Life expressed satisfaction with the investment: “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.”

ADB has a longstanding commitment to biodiversity conservation. It is a founding partner of the Coral Triangle Initiative, established in 2009, which aims to protect one of the world’s most critical marine ecosystems. In 2021, ADB, along with nine other multilateral development banks, issued the Joint Statement on Nature, People, and Planet at the Glasgow Climate Community of Practice. More recently, in 2023, ADB launched the Nature Solutions Finance Hub and the Natural Capital Fund in partnership with the Global Environment Facility. The announcement of the new biodiversity and nature bond coincided with the 16th Conference of the Parties of the Convention on Biological Diversity held in Cali, Colombia.

Looking ahead, ADB is set to unveil its Environment Action Plan 2024–2030: Towards a Nature Positive Asia and the Pacific, which will outline its strategic roadmap to address pressing challenges such as climate change, biodiversity loss, and pollution.

Tanguy Claquin, Global Head of Sustainability at Credit Agricole CIB, remarked, “We are very pleased to assist ADB in its sustainable finance journey since inception. Launching the Biodiversity and Nature Bond is a significant achievement to promote nature solution finance, encompassing goals related to fighting against nature and biodiversity loss, promoting local economic growth, and inclusion.”

The issuance of this bond marks a significant step towards enhancing investment in nature-based solutions, reinforcing ADB’s role in addressing environmental issues while fostering economic development in the region.