ADB Plans Inaugural Water Bond

The Asian Development Bank said it will issue its inaugural Water Bond in April to finance its work in the water sector in Asia and the Pacific region.

The Water Financing Program for 2011-2020, which is currently being drafted, will be supported by the water bond, the bank said.

The Water Bond, to be launched in two tranches, is denominated in Australian dollars and South African rand.

The bond plans to achieve high efficiencies in urban water services and improve productivity by using less water and newer technologies for irrigation.

The bond also intends to improve water quality through waste water management, increase investments in water capture and storage and adapt to climate change along with water governance.

Daiwa Securities Capital Markets will arrange the bond issue while Daiwa Securities will distribute it to Japanese retail and institutional investors, the bank said.

ADB lent $25bn for water projects in 2009 while a $8.7bn is expected to be in the pipeline for 2010-2012.