The Philippines-based multilateral is expecting to raise around $200 million via the issue from Japanese retail investors, according to the arranger, HSBC Securities. 

“Clean energy is a crucial element in the fight against poverty in Asia and the Pacific. To put the region on a path to sustainable and inclusive economic growth, we are committed to supporting clean energy projects in the region that avoid harming people or the environment,” said ADB president Haruhiko Kuroda. 

The bond will have four tranches, with one each in Australian dollars and Turkish lira, and two in Brazilian reais, and will carry tenors of between four and seven years. The bond is due to be issued on 29 September. 

The ADB says it will “provide assistance to clean energy projects in an amount at least equal to the amount raised by the clean energy bond”. 

Between 2005 and 2009, the bank invested more than $5 billion in clean energy, and is targeting $2 billion a year by 2013 in clean energy and energy efficiency in the region. 

In February, the ADB announced it was marketing a “water bond” – representing the first time the ADB had issued a bond targeted at a specific sector. The bank raised around $640 million via the bond. 

Asked if the ADB planned further similar bonds, a spokeswoman said: “The ADB is always looking at a variety of markets and responds with topical and other bonds when market conditions allow.” 

The clean energy bond is the latest of a slew of climate change-related bond issues by multilaterals including the World Bank and the European Investment Bank. 

Mark Nicholls