The Asian Development Bank sold some $339 million worth of bonds in the Japanese market to finance energy-related projects in developing member-countries like the Philippines.
The ADB, in a statement, said projects aimed at boosting supply and promoting efficient use of clean energy were seriously needed given the growing economies and population in Asia, which has been driving the global economy’s growth.
Given the growing needs of the region, ADB said, member-countries should prioritize energy-related projects, which may be funded with the help of loans from the institution.
The ADB said the successful sale of the so-called “Clean Energy Bonds” to Japanese retail investors would augment resources to provide concessional loans to developing member-countries so they could invest in vital energy projects.
“Asia needs to meet its growing energy needs in ways that do not pollute the air we breathe or water we drink, and to do that there needs to be more investments in clean energy projects,” ADB treasurer Mikio Kashiwagi said in the statement.
Projects to be funded through proceeds of the bond sale may also include those that will provide developing countries access to modern source of electricity.
The bonds sold by the ADB were composed of A$15.3 million worth of four-year bonds, 147 million Brazilian real worth of three-year bonds and 452 million Turkish lira worth of three-year bonds.
Nomura International Plc. served as arranger of the bond sale.
This was the second time ADB sold Clean Energy Bonds. The first time was in September 2010, when it raised the equivalent of $232.2 million.
According to latest estimates cited by the ADB, Asia accounted for 27 percent of the world’s energy consumption in 2007. The share is expected to jump to more than 40 percent by 2050 given the growing economies and population in the region.
Moreover, there were still 700 million people in Asia who do not have access to modern sources of electricity, the ADB said.
The Philippines has ongoing energy projects funded by the ADB and intends to implement more ADB-funded energy projects following the bond sale.
The Philippines is the fifth-biggest ADB borrower, getting an average of $600 million in loans from the developmental institution yearly.
In 2011, total loans approved by the ADB for its member-countries amounted to $21.7 billion.