Deutsche Bank helps issue Australia’s first climate adaptation bond

Deutsche Bank has played a lead role in helping the Asian Infrastructure Investment Bank (AIIB) issue its first climate adaptation bond. Positively received by investors, the five year, 500 million Australian dollar bond is the first climate adaptation bond in the Australian market. 

Climate adaptation financing focuses on improving the resilience of infrastructure to withstand the effects of climate change to help protect vulnerable communities in the long-term. This bond will help finance climate adaptation projects across Asia, for example by making electricity distribution, water services, and flood recovery infrastructure more resilient. 

Deutsche Bank acted as Joint Lead Manager on the transaction; its third benchmark Australian dollar transaction for the AIIB in the last three years. The deal highlights Deutsche Bank's expertise in sustainable finance and its commitment to delivering innovative solutions for its clients while making a positive impact on the environment.

Craig Johnston, Head of Debt Syndicate, Debt Capital Markets for Australia, said: "The positive engagement received in the AIIB transaction is testament to the increasing demand for high quality ESG issuance. By mobilising capital for climate adaptation projects, this bond ensures infrastructure is more resilient to protect communities from the effects of climate change. It further cements our leadership in sustainable financing and as a leading international bank in the Australian bond market.”