The Asian Development Bank (ADB) has issued a JPY20 billion ($126 million) seven-year water theme bond to finance projects supporting sustainable agriculture, water resource management and food security across Asia and the Pacific.
The bond, issued on August 26, 2026, was purchased by Zenkyoren, Japan’s National Mutual Insurance Federation of Agricultural Cooperatives, and arranged by Daiwa Capital Markets Europe Limited. It represents ADB’s first yen-denominated thematic bond issuance and its third-largest yen-denominated issuance.
ADB Treasurer Tobias Hoschka said the water bond will help mobilise private sector financing for resilient agriculture and water services while supporting food security for vulnerable communities.
Asia and the Pacific faces significant climate and water-related risks, with the region experiencing more than four in ten global flood events. Although millions of people have gained greater access to water security in recent years, environmental degradation, rising climate hazards and insufficient infrastructure investment continue to threaten progress.
ADB’s water investments are aimed at addressing these challenges through improved irrigation, integrated water resource management, disaster resilience, agricultural productivity and innovative water technologies.
The bank committed $12.7 billion to the water sector between 2021 and 2025, benefiting approximately 63 million people. These investments have supported efforts to improve water availability for agriculture, strengthen climate resilience and develop more sustainable regional food supply chains.
The latest bond also follows the establishment in July of the Water Initiative for Security, Efficiency and Resilience Fund by ADB and the Government of Japan. The fund is designed to help developing member countries strengthen water systems, reduce disaster risks, improve water-use efficiency and deploy digital and innovative solutions.
The new Japanese yen water bond demonstrates the growing role of thematic financing in supporting climate resilience and sustainable development. By directing capital towards water and agriculture projects, ADB aims to strengthen essential infrastructure while helping communities adapt to increasing environmental and climate pressures.
The issuance also reinforces ADB’s partnership with Japanese investors and its broader efforts to mobilise private capital for sustainable and resilient development across Asia and the Pacific.
