ADB to Finance its Ambitious Multi-Billion Clean Energy Fund by smartly selling Multi-Currency Bonds to yield hungry Japanese

Asian Development Bank has made ambitious plans to Fund Clean Energy in Asia.It has already invested $5 Billion since 2005 and plans to increase it to $2 Billion annually by 2013.These funds will go towards the development of the whole gamut of green energy options like wind,solar,biomass and geothermal energy in Asia.Note ADB is already funding a Thai73 MW  solar project which is supposed to be the largest in Asia.The Asian continent has massive energy needs with large parts underdeveloped and lacking in capital.ADB wants to fill the gap in capital funding by becoming a major financial intermediary.The Institution has already picked up HSBC to manage the bond which will be issued in 4 parts denominated in 3 different currencies.ADB has sensibly picked Japan to market its  Bonds as the country remains hungry for high quality bonds which would offer anything better than the almost zero yield Japanese Government Bonds.Foreign currency denomination will provide a further sweetener for investors looking to play the yen carry trade as well.

ADB to issue bond to finance clean energy projects – Bloomberg

The Asian Development Bank said Wednesday it plans to issue its first clean energy bond to raise funds for renewable energy projects in Asia.The development lender said it would match the amount raised by the bond, which is expected to be issued later this month and would target Japanese retail investors. The bond issuance will be arranged through HSBC Securities (Japan) Ltd. and will be sold throughout Japan by more than 20 securities companies.

The bond will have four tranches, one denominated in Australian dollars, another in Turkish lira and two tranches in Brazilian real. They will have tenors — the period to maturity — of between four and seven years.The ADB is targeting $2 billion a year in clean energy investments by 2013 to focus on wind, solar, water, geothermal and biomass — plant matter such as sugarcane used to generate electricity. It has invested more than $5 billion in clean energy since 2005.