The Asian Development Bank plans to issue its first water bond for water-related projects in Asia and the Pacific. The bank tapped Daiwa Securities Capital Markets Co. to arrange the issuance of the bond and Daiwa Securities Co. to manage its sale to Japanese investors. The bond, which is expected to be issued in April, will have two tranches, in South African rand and Australian dollars.
The bond will support a successor to ADB’s Water Financing Program. The new 2011-2020 program will aim to improve overall water quality, water governance, the efficiency of urban water services, the productivity of irrigated agriculture, as well as climate change adaptation in Asian and Pacific countries.