ADB to issue 474.5 million Turkish lira 6.29% water bond due 2015

By Marisa Wong

Madison, Wis., Jan. 27 - The Asian Development Bank (ADB) said it plans to issue a water bond with a principal amount of 474.5 million Turkish lira. The water bond will have a coupon of 6.29% and will mature on Feb. 26, 2015.

The issue is being arranged by Daiwa Securities Capital Markets Co. Ltd and will be distributed by Daiwa Securities Co. Ltd. to Japanese retail and institutional investors.

This will be ADB's second water bond. ADB will use the proceeds for water-related projects in Asia, such as new water supply systems in urban areas, major rehabilitation of existing irrigation systems and investment in wastewater management.

"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," Thierry de Longuemar, vice president of finance and administration at ADB, said in a news release.

"Through ADB's water bonds, investors can support projects that directly answer this critical need for sufficient safe water."

ADB issued its first water bonds in April 2010, raising a total of $638 million. ADB also sold $244 million of clean energy bonds, proceeds of which were dedicated to clean energy investments in Asia and the Pacific.

According to the release, water is a key component of ADB's long-term strategy to reduce poverty in the region, and its lending in the sector is targeted at more than $6.6 billion in 2012 and 2013.

ADB disbursed just over $750 million to 82 water-related projects in 2010 and $715 million to 93 projects in 2011.

The international development finance institution is based in Manila.

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