The Asian Infrastructure Investment Bank (AIIB) has successfully priced its first Climate Adaptation Bond, a thematic bond issued under the AIIB Sustainable Development Bond Framework.
The five-year bond raised A500 million ($338 million), and the proceeds will be allocated to projects that have an estimated climate adaptation finance portion of 20 percent or greater of the total project financing.
The purpose of the Climate Adaptation Bond is to raise awareness about climate-resilient and adaptive infrastructure investments. In 2015, the Paris Agreement established the global goal of adaptation and AIIB has committed to be fully aligned with the Paris Agreement by July 1. Climate adaptation financing is about investing now to make infrastructure assets more resilient so that as the effects of climate change intensify, infrastructure is able to protect vulnerable communities in the long-term.
Asia, as a region, is already experiencing the effects of climate chan