Now the Asian Development Bank (ADB) is getting with the "themed" bonds rhythm: they're marketing Water Bonds to finance its work in the AsiaPac water sector. Daiwa Securities is lead manager; bonds will be issued in Australian dollars and South African rand.
While bond finance for water infrastructure is commonly sought in developed countries, it's rare in emerging nations.
At the Climate Bonds Initiative we've been particularly concerned about the burgeoning need to build water infrastructure in emerging nations that will have to adapt to reduced water availability under climate change. Development experts say that water infrastructure investments can readily be tied to improved economic outcomes, with that benefit showing up as improved taxation government receipts; expect more Government and MLI Water Bonds.
According to Environmental Finance, the ADB is also considering issuing climate bonds. We'll keep you posted!