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Manila: The Asian Development Bank (ADB) has launched a new report aimed at helping developing countries tap into global capital markets to support a green, resilient, and inclusive recovery from the coronavirus disease (COVID-19) pandemic and meet the Sustainable Development Goals (SDGs).
The publication, Accelerating Sustainable Development after COVID-19: The Role of SDG Bonds, is a guide to using SDG bonds as a mechanism to attract global private financing. It proposes a new kind of SDG bond, the SDG Accelerator Bond, which could help countries reduce the perceived investment risk posed by an issuing entity, sector, or project with no track record on bond issuance. The new bond proposes to combine exit guarantees and other credit enhancement structures with incentives to help countries meet SDG targets.