The Asian Development Bank (ADB) has raised €600 million (~$702.80 million) to support climate change mitigation and adaptation projects with the issue of a 7-year green bond.

The bond has a coupon rate of 0.35 percent per annum and is payable annually. It has a maturity date of July 16, 2025. Proceeds from this bond will go through ADB’s ordinary capital resources and used in its non-concessional operations.

“We are very pleased to accommodate the strong demand for our green bonds from euro investors, which allowed us to both tighten price guidance while increasing the issue size for our first euro denominated benchmark green bond,” said Pierre Van Peteghem, the treasurer at ADB, in a media release.

Last year, ADB raised $47 million from a new issue of offshore Indian Rupee-linked bonds to finance climate change mitigation and adaptation projects in India.

In 2017, it reached a record of $4.5 billion for the financing of climate mitigation and adaptation projects, which was 21 percent higher than 2016.

The bank’s next target for climate financing is to reach $6 billion by 2020. It plans to offer $4 billion for the climate change mitigation through support for renewable energy, energy efficiency, sustainable transport, and building smart cities. The remaining $2 billion will be dedicated towards the adaptation of a more resilient infrastructure, climate-smart agriculture, and better preparation for climate-related disasters.

Bank of America Merrill Lynch, Citi, and Credit Agricole CIB managed the transaction.

According to ADB, this issue achieved strong primary market distribution with nearly 90 percent placed in Europe, the Middle East, and Africa, and 10 percent in Asia. By investor type, 39 percent of the bonds went to central banks and official institutions, 12 percent to banks, and 48 percent to fund managers, insurance, pension funds, and others.

Previously, the International Financial Corporation (IFC), a member of the World Bank group, issued its first internationally rated triple-A peso-denominated green bond, which is equivalent to $90 million.

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