The Asian Development Bank on Tuesday issued an A$150 million ($100 million) 10-year bond, its first nature-themed debt instrument, to finance eligible projects in the Asia-Pacific region.

According to a statement, the biodiversity bond was purchased by the Dai-ichi Life Insurance Co. Ltd. of Japan and arranged by Credit Agricole CIB.

The announcement was made at the 16th Conference of the Parties of the Convention on Biological Diversity held in Cali, Colombia, between Oct. 21 and Nov. 1.

The statement further said the bond was issued under ADB’s Theme Bonds for Sustainable Development program.

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

Hoschka said the bank seeks to mobilize additional private sector capital to protect and ensure sustainable management of biodiversity and nature mainstreaming through this bond.

ADB’s theme bonds for sustainable development are a critical vehicle to support the United Nations Sustainable Development Goals and the Kunming-Montreal Global Biodiversity Framework while offering investors a safe investment opportunity through the bank’s AAA credit rating.

“We are committed to creating a positive impact on society by investing in assets that contribute to solving social issues,” said Kazuyuki Shigemoto, managing executive officer of Dai-ichi Life in the statement.

ADB has long been committed to protecting biodiversity and nature. It is a founding partner of the Coral Triangle Initiative, established in 2009 to safeguard one of the world’s most critical marine ecosystems.

At the Glasgow Climate Community of Practice in 2021, ADB and nine other multilateral development banks issued the Joint Statement on Nature, People, and Planet.

Last year, the development bank also launched the Nature Solutions Finance Hub with partners and the Natural Capital Fund in partnership with the Global Environment Facility.

The issuance of ADB’s biodiversity bond marks a significant step forward in financing sustainable initiatives that address urgent environmental challenges.

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