ADB Sells $339 Million in Clean Energy Bonds

MANILA, PHILIPPINES – The Asian Development Bank (ADB) has raised the equivalent of $339 million from its second sale of Clean Energy Bonds to Japanese retail investors. The bonds will support ADB’s ongoing renewable energy and energy efficiency projects in Asia and the Pacific.

“Asia needs to meet its growing energy needs in ways that don’t pollute the air we breathe or water we drink and to do that, there needs to be more investment in clean energy projects,” said Mikio Kashiwagi, ADB Treasurer. “The Clean Energy Bonds provide a way for investors to direct funding to clean energy projects.”

Asia accounted for about 27% of the world’s energy consumption in 2007 and its share is expected to rise above 40% by 2050 as the region’s economies grow and as its population expands and becomes better off. Right now, 700 million people in Asia still have no access to a modern electricity source.

The bond sale comprised A$15.3 million in 4-year paper, BRL147 million in 3-year bonds, and TRY452 million in 3-year bonds.

The equivalent proceeds of the Australian dollar, Brazilian real, and Turkish lira bonds will be dedicated to clean energy projects that ADB finances in developing Asia. In 2011, ADB invested $2.1 billion in a variety of clean energy projects, meeting its goal of investing $2 billion per year by 2013 two years ahead of schedule. Within that, renewable energy investments amounted to $1.18 billion with energy efficiency projects accounting for the rest.

The transactions were arranged by Nomura International plc and the bonds were placed with Japanese retail investors.

ADB first sold Clean Energy Bonds in September 2010 when it raised $232.2 million in Australian dollar, Brazilian real and Turkish lira-denominated paper. It has also sold Water Bonds under which equivalent proceeds are committed to water-related projects in the region.