Outcome Bonds

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Outcome Bonds

Amazon Reforestation-Linked Bond

The largest World Bank outcome bond to date provides investors with a coupon linked to the generation of Carbon Removal Units (CRUs) from reforestation projects in the Amazon rainforest regions of Brazil.

Wildlife Conservation Bond

This principal protected bond supports a conservation project in South Africa, providing investors a return linked to the growth rate of the black rhino population.

Why Invest?
How to Support Outcome Bonds?
More info

In addition to supporting IBRD’s general sustainable development activities, World Bank (IBRD) outcome bonds provide investors with the opportunity to support specific development projects and outcomes. These outcome bonds harness private capital and transfer project performance risk to investors, who are rewarded if the underlying activities are successful.

IBRD outcome bonds can provide investors with:

A sustainable development labeled investment that supports the World Bank’s sustainable development activities and projects globally
A unique level of additionality and an opportunity to support specific projects or development themes
Potential yield enhancement compared to ordinary IBRD bonds, with a direct link between the bond returns and outcomes of a particular project
Credit enhancement, through full or partial principal protection from IBRD (AAA/Aaa issuer credit rating)

Outcome Bond Examples

Name	Size (Aggregate Nominal Amount)	More Information
Amazon Reforestation-Linked Bond	$225,000,000	Press Release
Plastic Waste Reduction Linked Bond	$100,000,000	Case Study
Emissions Reduction Linked Bond	$50,000,000	Case Study
Wildlife Conservation Bond	$150,000,000	Case Study
UNICEF Bond	$100,000,000	Press Release

The World Bank Treasury is actively seeking to replicate and scale up outcome bond transactions to support other sustainable development projects with positive social and climate goals. Often the ability to issue an outcome bond is dependent on finding an entity to fund successful project results or to cover transaction costs.
The role of partnerships is more important than ever. The World Bank’s new vision and mission require it to mobilize private capital for clients and welcomes interest from partners interested in supporting outcome bond transactions through:
Outcome payments: Provide financing to allow the outcome payer to support development projects of particular interest without taking project implementation risk.
Grants: Use of grants to fund transaction costs to increase the financing available to support the project.
Amazon Reforestation-Linked Bond
Press Release
Case Study
Q&A
Feature Story
Plastic Waste Reduction-Linked Bond
Press Release
Case Study
Q&A
Feature Story
Emission Reduction Linked Notes
Press release
Case Study
Q&A
Feature Story
Video
Wildlife Conservation Bond
Press Release
Case Study
Q&A
Feature Story
Video
UNICEF Bond
Press Release
Q&A
AWARDS
Environmental Finance
Award for innovation - bond structure (sustainability bond) and use of proceeds (sustainability bond)
Impact project/investment of the year - climate: World Bank Emission Reduction-Linked Bond
Award for innovation - bond structure (sustainability bond): IBRD
Initiative of the year - sustainability bond: IBRD
CMD Portal
First Rhino Bond: Top Deal Winner
IFLR Deal of the Year
Debt& Equity Linked
2023 Emission Reduction Linked Bond
Impact project/investment of the year - climate
2022 Wildlife Conservation Bond
Award for innovation - bond structure (sustainability bond)
2022 Wildlife Conservation Bond
Initiative of the year - sustainability bond