The Asian Development Bank (ADB) is issuing its second water bond to Japanese investors to provide assistance to the water sector.
The $266.8m water bond, maturing on 26 February 2015, will pay an annual coupon of 6.29%.
Daiwa Securities Capital Markets Co, the wholesale securities firm under the Daiwa Securities Group, is responsible for arranging the issue and will distribute it to to Japanese retail and institutional investors.
ADB will provide assistance in an amount at least equal to the net proceeds of the bond to water-related projects in the region.
The projects include new water supply systems in urban areas, major rehabilitation of existing irrigation systems and investment in wastewater management.
ADB finance and administration vice president Thierry de Longuemar said hundreds of millions of people in developing Asia don't have clean water to drink.
"Water to irrigate crops isn't always available and water supplies are becoming scarcer due to pollution and climate change," Longuemar said.
"Through ADB's Water Bonds, investors can support projects that directly answer this critical need for sufficient safe water."
ADB said demand for water from households and industry in Asia is soaring and is forecasting growth to accelerate from 70% to 345%between 1995 and 2025.
The bank raised a total of $638m following its issue of the first water bonds in April 2010 and also sold $244m in clean energy bonds, where equivalent proceeds are dedicated to clean energy investments in Asia and the Pacific.
Through its existing capital resources, ADB disbursed just over $750m to 82 water-related projects in 2010 and $715m to 93 projects last year.
