The Tokyo Metropolitan Government issued a €300 million (¥53 billion) bond Tuesday to boost flood defenses and other climate-related countermeasures.
The money will be used to upgrade coastal protection facilities for the Port of Tokyo, develop sediment prevention facilities and enhance river flood resilience. The bond, which was validated by the Climate Bonds Initiative, is the world’s first certified resilience bond, according to the Tokyo government.
“This new bond label is a notable development for the market,” said Melissa Cheok, an associate director at Sustainable Fitch. The bond’s oversubscription “signals that the market is ready to allocate capital to these types of investments.”