The Asian Development Bank (ADB) has raised US$1.25 billion to help finance climate change mitigation and adaptation projects by issuing dual-tranche 5-year (US$750 million) and 10-year green bonds (US$500 million).

Proceeds of the green bonds will go towards supporting low-carbon and climate resilient projects.

“ADB is responding to the rapidly growing demand for green bonds with our second dual-tranche outing and our first five-year green bond offering,” said ADB treasurer Pierre Van Peteghem. “We have found the dual-pronged approach taken today to be an efficient means of reaching ethical investors active at different segments of the yield curve. This approach means that ADB is reaching an increasing number of investors who understand the importance of the green label.”

In 2015, ADB announced that it would double its annual climate financing to US$6 billion by 2020. Around US$4 billion will be dedicated to mitigation through scaling up support for renewable energy, energy efficiency, sustainable transport, and building smart cities, while US$2 billion will be for adaptation through more resilient infrastructure, climate-smart agriculture, and better preparation for climate-related disasters.

ADB recently invested in Thai power firm B. Grimm Power Public Company to develop renewable energy projects in Southeast Asia.

India solar firm Azure Power will also be issuing US$500 million in green bonds.