The Asian Development Bank issues its first Biodiversity and Nature bond
In October 2024, the Asian Development Bank (ADB) issued its first theme bond focusing on protecting biodiversity and nature, worth AUD 150 million (USD 100 million).
This unique transaction in the ESG capital market brings the concept of “nature-positive investments”, in which the conservation of biodiversity and nature is not the only objective, but is a mean to achieve more by enhancing ecosystem services that are critical for strengthening the resilience of vulnerable communities and infrastructure to climate impacts.
To generate momentum around this concept, ADB priced the deal during the 16th Conference of the Parties to the Convention on Biological Diversity (COP16), held in Cali, Colombia.
This initiative, under ADB’s Theme Bonds for Sustainable Development programme, aligns with the United Nations’ Sustainable Development Goals (SDGs) and the Kunming-Montréal Global Biodiversity Framework.
As a leader in sustainable finance and a long-lasting partner of ADB, Crédit Agricole CIB played a crucial role as the sole arranger of this bond issuance. The Bank has assisted ADB in its sustainable finance journey since inception, through green finance and other theme bonds – blue, gender, health and education, over the years. In 2024, Crédit Agricole CIB was mandated by ADB for five other public benchmark bond issuances, including two green bonds.
A long-term vision for Asia and the Pacific
For ADB, investing in nature is emerging as one of the most impactful ways to combat climate change, biodiversity loss, and pollution. This theme bond offers an innovative financial solution to mobilise private sector capital to protect, restore, and enhance sustainable management of biodiversity and natural ecosystems, while offering investors with a safe and attractive investment opportunity through ADB’s AAA credit rating.
This 10-year bond was fully subscribed by Dai-ichi Life Insurance Company, Limited, a Japanese institutional investor committed to creating a positive impact on society by investing in assets that contribute to solving social issues while providing a positive economic return. This investment reflects the company’s ambitions to support tangible actions that promote biodiversity protection, nature mainstreaming, as well as the livelihoods of the communities.
Funds raised will be allocated to projects such as the reconstruction of water structures with heritage value incorporating nature-based solutions to improve climate resilience in India, as well as the improvement of ecological systems and rehabilitation of environmental infrastructures, like wetlands and detention basins, in China.
A lasting commitment to biodiversity
Founded in 1966, ADB works towards achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. It is owned by 69 members, 49 from the region.
Committed to protecting natural capital and biodiversity, ADB is a founding member of the Coral Triangle Initiative (2009) and a signatory of the Joint Statement on Nature, People, and Planet issued at the 26th Conference of the Parties for the United Nations Framework Convention on Climate Change (COP26 – 2021). 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 issuance of this Biodiversity and Nature Bond is part of ADB’s broader strategy to strengthen sustainable and climate finance in Asia and the Pacific. As part of this commitment, ADB published its 2024-2030 Environmental Action Plan in November 2024 – a roadmap for combating climate change, halting biodiversity loss, and reducing pollution.
Marking a key milestone in financing nature-based solutions, this transaction is a testament to our ability to turn bold ideas into real financing through tailor-made solutions. Two decades after pioneering the sustainable finance market, we continue to stay at the forefront and remain the go-to bank for ESG solutions, constantly reaching new heights and broadening our clients’ scope of action. We now look forward to supporting the next round of ADB’s state-of-the-art financing.
Antoine Rose
Head of Sustainable Investment Banking for Asia-Pacific and the Middle-East at Crédit Agricole CIB
