The World Bank, through the International Bank for Reconstruction and Development, priced a USD 120 million Spekboom Restoration Outcome Bond maturing in 2040 that provides full principal protection while linking part of investors’ return to performance from a spekboom restoration project in South Africa’s Eastern Cape. The bond is described as the World Bank’s longest-dated outcome bond, with proceeds used to support the World Bank’s sustainable development lending activities globally. The structure channels part of the coupon economics to fund the restoration programme: investors receive a fixed coupon that is lower than regular World Bank bonds of similar maturity, and the remaining portion that would otherwise have been paid is directed via a hedge transaction with BNP Paribas to Imperative as upfront financing for a planned 50,000-hectare scale-up, targeting 11,000 local jobs. Amazon will purchase a large share of the expected carbon removal units under a fixed-price offtake agreement for more than a decade, and a predetermined percentage of the carbon removal unit revenue is paid back to bondholders through BNP Paribas as CRU-linked interest, with annual payments starting from November 2, 2031; the fixed interest amount is 2.410% per annum with a short first coupon. BNP Paribas acted as sole lead manager and bookrunner, the bond is listed on the Luxembourg Stock Exchange, and settlement is scheduled for April 30, 2026.
World Bank 2026-04-23
World Bank prices USD 120 million 14-year Spekboom Restoration Outcome Bond linked to South Africa ecosystem restoration
The World Bank, through the International Bank for Reconstruction and Development, has priced a USD 120 million Spekboom Restoration Outcome Bond maturing in 2040, offering full principal protection while linking part of investor returns to a spekboom restoration project in South Africa’s Eastern Cape. Investors receive a 2.410% fixed coupon, with the foregone portion channelled via a hedge with BNP Paribas to fund a 50,000-hectare restoration scale-up, and additional CRU-linked interest paid from carbon removal unit revenues under a long-term offtake agreement with Amazon.