ADB Issues First Blue Bond for Ocean Investments

The Asian Development Bank (ADB) has rolled out its first-ever dual-tranche blue bonds (denominated in Australian and New Zealand dollars) for financing ocean-related projects in the Asia-Pacific (APAC) region.

The A$208 million (~ $150 million) 15-year issue was bought by Dai-Ichi Life Insurance Company Limited arranged through Citigroup Global Markets Limited. The NZ$217 million (~ $151 million) was purchased by Meiji Yasuda Life Insurance Company through Credit Agricole CIB.

Both the companies are headquartered in Japan and purchase blue bonds to finance projects related to protecting and restoring ocean health.

The bonds are a major proponent for ADB’s Action Plan for Healthy Oceans and Sustainable Blue Economies, a sustainable investment mega project launched by the bank in 2019.

According to the bank, the blue bonds are replicable and scalable, and are aimed at growing the ocean economy across Asia and the Pacific. The proceeds raised from these bonds will be used toward ADB’s initiatives related to the protection and restoration of marine ecosystems and to promote inclusive opportunities amongst the region’s economies.