The International Bank for Reconstruction and Development (IBRD), known as the World Bank, issued two green bonds, of A$274 million ($202.7 million) and NZ$241 million ($166.1 million) for climate finance in developing countries.

For the first time a group of Japanese life insurance companies that wanted to highlight their support for financing climate projects in developing countries came together to invest in the bonds. The group wanted to show support for financing these types of projects and the role multilateral banks play in providing this finance ahead of the United Nations Climate Change Conference in November 2021.

Under the World Bank's Green Bond Framework, the proceeds will be used for eligible projects that help mitigate or adapt to climate change. These include renewable energy installations, energy efficiency projects, and new technologies in waste management and agriculture that reduce greenhouse gas emissions, as well as forest and watershed management and infrastructure projects that prevent climate-related flood damage and build climate resilience.

"We were glad to bring Japanese life insurance companies together for the first time to show their collective support for financing climate action in developing countries and the critical role multilateral development banks play in building greener, more resilient communities and economies," said Heike Reichelt, head of investor relations and sustainable finance at the World Bank.

The World Bank has issued over 185 green bonds in 23 currencies, with a total value of almost $16 billion, since its inaugural issue in 2008.

The Japanese life insurance companies that participated in the transaction were Dai-ichi, Fukoku Mutual, Nippon and Sumitomo.