The Asian Development Bank has earned $232.2 million from the sale of clean energy bonds that will be used to back up its renewable energy and energy efficiency projects in Asia and the Pacific.
This transaction follows the successful sale of the bank’s first water bonds in April for the bank’s work in the region’s water sector.
For its clean energy bond issue, the bank focused on Japanese retail investors. HSBC Securities Limited in Japan managed the business deal, while over 20 securities firms distributed the clean energy bonds nationwide.
“The healthy sale of the clean energy bonds shows a clear desire among Japanese investors to see funds committed to clean energy projects that will help improve the environment but ensure sustainable growth in the region,” said Thierry de Longuemar, the bank treasurer
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The bond consists of four tranches – four year bonds in Australian dollars, four-year and seven-year bonds in Brazilian real and seven-year bonds in Turkish lira.
The clean energy bonds aim to address the rising energy demand in Asia and the Pacific brought about by rapid economic growth, resulting in a continuous increase in greenhouse gas emissions and a depleting supply of energy resources.
Primary energy demand in developing Asia is projected to surge to 6.3 billion tons of oil equivalent by 2030 from 3.2 million tons of oil equivalent in 2006, particularly due to the tremendous demand in China and India.
However, about one-fourth of the region’s population – or more than 800 million people – still do not have access to basic electricity, while approximately 1.8 billion people continue to depend on traditional biomass fuels for cooking and heating.
“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 Haruhiko Kuroda, president of the multilateral bank.
Clean energy is one of the bank’s top priorities, with 27 percent of the total approved loans supporting clean energy projects in 2008. From 2005 to 2009, the bank’s total clean energy investments surpassed $5 billion.
Now, the bank intends to achieve $2 billion in clean energy investments, such as biomass, wind, solar, hydropower, geothermal and energy efficiency, by 2013 as part of its energy policy
