|
The World Bank has priced its largest-ever outcome bond, a $225 million Amazon Reforestation-Linked Bond, designed to tie financial returns directly to the success of reforestation projects in the Amazon. Unlike traditional carbon credit bonds, this innovative bond links returns to the generation of Carbon Removal Units (CRUs) from the reforestation of Brazil’s Amazon rainforest, making it a groundbreaking approach to mobilizing private capital for environmental impact. Jorge Familiar, Vice President and Treasurer of the World Bank, emphasized the bond’s significance: “As demonstrated by the historic level of participation in today’s transaction, private investors are eager to connect their financial return to positive development outcomes in the Amazon region.” The bond is fully principal-protected, with a dual coupon structure. Investors receive a fixed guaranteed component and a variable component linked to CRUs generated by Mombak, a Brazilian reforestation company. The proceeds are channeled into Mombak’s projects, which involve partnering with landowners to reforest the Amazon with native species, thereby not only removing carbon but also boosting local biodiversity and supporting community development.
Find out more here. |
Skip to content
Skip to sidebar
Skip to footer
