• The Tokyo Metropolitan Government issued the world’s first Climate Bonds Certified Resilience Bond, raising €300 million.
• The bond was oversubscribed seven times, attracting €2.2 billion in bids from nearly 120 investors.
• Funds will strengthen Tokyo’s flood defenses, coastal protection, and disaster risk infrastructure.

A Global Benchmark for Resilience Finance

The Tokyo Metropolitan Government (TMG) has priced a €300 million (¥53 billion) five-year Climate Bonds Certified resilience-labelled bond — the first in the world to be certified under the Climate Bonds Resilience Criteria and Taxonomy.

The issuance attracted €2.2 billion in bids, representing a 7x oversubscription, and was jointly led by Barclays, Bank of America, Crédit Agricole (B&D), and Citigroup, which also served as sustainability structuring agent. Priced at 40 basis points over mid-swaps after a 6bp tightening, the bond is expected to carry an A+ rating, aligning with Japan’s sovereign credit rating.

Financing Climate-Ready Infrastructure

Proceeds from the TOKYO Resilience Bond will fund projects enhancing the capital’s capacity to withstand climate-related risks such as flooding, storm surges, and typhoons. Investments include:

• Upgrading rivers to improve flood resilience
• Developing coastal protection for the Port of Tokyo and nearby islands
• Reinforcing river and port infrastructure
• Undergrounding power lines to mitigate disaster risk

These initiatives are part of the TOKYO Resilience Project, a citywide plan to safeguard 14 million residents from escalating climate threats.

Market Signals Strong Investor Demand

The issuance marks a historic milestone for sustainable finance, representing the first bond certified under the Climate Bonds Resilience Taxonomy (CBRT)—a framework designed to expand investment in adaptation and resilience.

According to Melissa Cheok, Associate Director at Sustainable Fitch, “This new bond label is a notable development for the market. The oversubscription signals that the market is ready to allocate capital to these types of investments.”

Expanding Certified Climate Investments

Until now, Climate Bonds Certification largely focused on mitigation and transition finance. The introduction of the Resilience Criteria and Taxonomy broadens the scope to include adaptation finance — allowing issuers to channel capital into climate-proofing infrastructure with scientific rigor and investor credibility.

The success of Tokyo’s landmark deal positions it as a global benchmark for future resilience-focused financing, signaling a maturing market appetite for credible adaptation investments.

Related Article: Tokyo to Issue World’s First Certified Climate Resilience Bond