World Bank Project Deck
OUTCOME BOND EXAMPLE
Helping Communities Remove and Recycle Plastic Waste
On January 24, 2024, the World Bank (IBRD) issued a Plastic Waste Reduction-Linked Bond, a principal
protected outcome bond, that channels private capital to a project with positive climate and development impacts.
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• Investors forego regular coupon payments to provide
up-front financing for projects that aim to reduce
USD 100 million 7-year Bond
•
•
and recycle plastic waste in vulnerable
communities in Ghana and Indonesia.
Projects help to reduce plastic pollution, create
improvements in local pollution and air quality, reduce
associated health impacts, and create jobs in
marginalized communities.
In addition to return of principal and a small
guaranteed return, investors receive variable coupons
linked to Plastic Waste Collection Credits, Plastic
Waste Recycling Credits and Voluntary Carbon
Units expected to be generated by two projects.
Investors include: Velliv Pension, Skandia, Mackenzie
Investments, T. Rowe Price, Muzinich & Co
Plastic Waste Reduction Bond Press Release
Summary Terms and Conditions
Rating:
Maturity:
Total Amount:
Settlement
Date:
Maturity Date:
Issue Price:
Plastic & VCU-
Linked Interest
Payment:
AAAP
7-year
USD 100 million
01/31/2024
01/31/2031
100%
Minimum
coupon:
Linked to the number of Plastic Credits
and Verified Carbon Units (VCUS)
issued from the projects, each subject
to a cumulative ceiling
1.75% per Specified Denomination
Lead Manager:
Citibank
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular World Bank projects or programs. Payments
38 on the bonds are not funded by any particular World Bank project or program.View entire presentation