The Asian Development Bank (ADB) launched its first theme bond (water) for sustainable development in 2010, in response to a growing demand among its investor base to highlight key initiatives. Since launching the water bond, ADB has expanded its theme bond offerings to include health, gender, and, most recently in 2021, education bonds.

The projects funded by theme bonds are aligned with the Sustainable Development Goals (SDGs) adopted by the United Nations on quality education, gender equality, clean water and sanitation, and good health.

• Education bonds improve access to, and the quality and relevance of, education and training, and amplify the returns to students and the workforce.

• Gender bonds promote gender equality and the empowerment of women.

• Health bonds tackle health challenges in Asia and the Pacific.

• Water bonds support projects under the Water Financing Program and highlight ADB’s efforts to address water and sanitation security needs in Asia and the Pacific, including water supply, sanitation, water resources management, and water-related disasters.

Table 1 summarizes the amounts issued for the various outstanding theme bonds. Table 2 shows the project commitments and disbursements for each theme bond.

Table 3 summarizes how the proceeds from the various types of theme bonds are used.

“ADB continues to deepen its engagement to enhance water security, promote universal health care, close gender gaps, and increase access to quality education in Asia and the Pacific,” says ADB Director General for Sustainable Development and Climate Change Bruno Carrasco.

The ADB Director General adds: “Many challenges remain and despite progress across our region over the recent decades, it has been adversely impacted by the COVID-19 pandemic. Theme bonds have been instrumental for ADB to address these developments and leverage additional resources to support strong and targeted interventions, especially in adapting to climate change and in pandemic response and recovery.”