ADB raises $4bn and forms ILX partnership

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Asian Development Bank (ADB) issues three-year bond worth $3bn and a 10-year bond worth $1bn, and partners with ILX Management to scale up private sector climate investment. 

The ADB has taken the latest steps towards raising more than $34bn this year for capital investments, with two bonds raising a total of $4bn for the bank in April.

ADB treasurer Pierre Van Peteghem commented: “We appreciate the confidence and consistent support of our investors as we launch our third global benchmark outing for the year amid challenging market conditions. Through this transaction, we raised $4 billion across two maturities, which provide us with the resources to continue to assist our developing member countries in Asia and the Pacific.”

At the same time, the bank has signed a co-operation agreement with fund manager ILX Management (ILX) to help scale up private sector investments to address climate change and other development challenges in developing countries as they target achieving the United Nations’ Sustainable Development Goals (SDGs).

The two companies will identifying projects together and ILX will mobilise co-financing for projects across ADB’s developing member countries, on behalf of Dutch pension provider APG Asset Management.

ADB director general for private sector operations, Suzanne Gaboury said: “We are thrilled to partner with ILX to mobilise financial resources that will help developing countries to meet their SDGs. Expanding partnerships with institutional investors like ILX and ADB’s strong track record of investing for development impact will make a meaningful contribution particularly to climate action in our region.”

ILX chief investment officer, Elvira Eurlings, added “The partnership demonstrates our shared commitment to fostering sustainable and inclusive growth in Asia and the Pacific. We look forward to working with ADB, and with other institutional investors as they play an increasingly important role in providing finance to help countries in emerging markets meet climate and other development goals.”

In 2021, ADB elevated its ambition to provide $100 billion in cumulative climate finance to its developing member countries from 2019 to 2030. It has also committed to ensure that at least 75% of ADB projects address climate change mitigation and adaptation efforts by 2030.