The Asian Development Bank has issued $268 million in Turkish lira-denominated ‘water bonds’, just months before the redemption of its inaugural issue under the programme.

Underwriter Daiwa Securities expects to place the TRY474.5 million 3-year bond – which carries a coupon of 6.29% – with retail and institutional investors in Japan over the coming weeks.

The ADB has previously told GWI that the proceeds of its ‘water bonds’ are not specifically ring-fenced for water projects, leading to the conclusion that the water moniker was designed specifically to make investors feel good about where they are placing their capital.

The proceeds raised from ADB water bonds in 2010 made up over 85% of the $750 million that the bank disbursed to water-related projects that year, although the bank still managed to fund 93 projects to the tune of $715 million last year, despite not issuing any water bonds at all.