ADB Raises $126 Million in Debut Yen-Denominated Water Bond

Zenkyoren, the National Mutual Insurance Federation of Agricultural Cooperatives, purchased the entire issuance, which was arranged by Daiwa Capital Markets Europe Limited. ADB Treasurer Tobias Hoschka noted that the move deepens the bank's ties with Japanese markets while providing a new mechanism to fund projects that protect vulnerable farming communities from floods and droughts.

This financial instrument arrives as the region grapples with escalating climate risks; more than 40% of global flood events occur in Asia and the Pacific. Despite progress—where 2.7 billion people have moved out of extreme water insecurity since 2013—infrastructure investment often struggles to keep pace with environmental degradation. The new bond complements the Water Initiative for Security, Efficiency and Resilience Fund established with the Japanese government in July. Between 2021 and 2025, the ADB committed $12.7 billion to the sector, benefiting roughly 63 million people through irrigation modernization and disaster-resilient water systems.