Japan’s Dai-ichi Life Insurance has bought the European Bank for Reconstruction and Development’s (EBRD) first climate resilience bond issued to a Japanese institutional investor, a A$160 million (US$118.8 million) 15-year offering.
The insurer says the bonds are rated triple-A and the proceeds will be used for ecological conservation projects.
“Through its investment in this bond, the company will financially support the EBRD’s initiatives to create a society that is highly resilient to the effects of climate change,” Dai-ichi Life says in a statement on July 20.
The EBRD, a multilateral development lender, has issued three other bonds to Dai-ichi Life since 2015. The offerings focused on microfinance, health and environment. The combined issuance, including the climate bond, is $405 million.
Dai-ichi Life has been “promoting ESG investments with a focus on the themes of quality of life, regional revitalisation and climate change, and actively investing in green and social bonds”, according to the insurer.
Tokyo-based Dai-ichi Life has 38 trillion yen ($342 billion) of insurance assets currently.