World Bank Issues $225 Million Bond with Interest Tied to Carbon Removals from Amazon Reforestation

The World Bank has launched a $225 million bond tied to carbon removal units (CRUs) from reforestation projects in Brazil’s Amazon rainforest, marking the first bond of its kind that links financial returns to carbon removal rather than avoided emissions. This bond is also the World Bank’s largest outcome bond to date. Investors will receive a fixed guaranteed coupon plus a variable component based on CRUs generated by Brazil-based Mombak, a company focused on large-scale reforestation. The bond’s proceeds will support global sustainable development, with around $36 million allocated to Mombak’s projects. Major investors include Nuveen, T. Rowe Price, and HSBC, which acted as lead manager. The bond is designed to deliver both financial returns and significant environmental and social impacts. Resources: https://www.esgtoday.com/world-bank-issues-225-million-bond-with-interest-tied-to-carbon-removals-from-amazon-reforestation/