The Asian Development Bank (ADB) issued its first ever dual-tranche blue bonds denominated in Australian and New Zealand dollars that will finance ocean-related projects in Asia and the Pacific. The A$208 million (around $151 million) 15-year issue is a new milestone for sustainable ocean finance. The tenor reflects the needs and long-term support for the sector.

The bonds are part of ADB’s Action Plan for Healthy Oceans and Sustainable Blue Economies launched in 2019, which aims to catalyze sustainable investments in Asia and the Pacific by committing to invest and provide technical assistance of at least $5 billion by 2024.

The funding gap to support healthy oceans is getting wider every year and the scale of the problem requires a leap from small transactions to transformative market deals. Innovative financial products like blue bonds diversify and expand the investor base, thereby increasing the amount of capital that can be invested in ocean health.

ADB’s expanded Green and Blue Bond Framework has received a Second Party Opinion from the leading evaluator of green bond investment frameworks CICERO Shades of Green. This provides investors with confidence that ADB bonds are mitigating climate change and protecting ocean health.

An example of an eligible project that may be financed by the bond is the Greater Malé Waste-to-Energy Project in Maldives, which will stem the flow of plastics and other wastes to the ocean and reduce greenhouse gas emissions.