World Bank Project Deck slide image

World Bank Project Deck

37 OUTCOME BOND EXAMPLE Wildlife Conservation Bond to Protect Black Rhinos and Support Local Communities in South Africa On March 31, 2022, the World Bank (IBRD) issued the first Wildlife Conservation Bond, a principal protected outcome bond, that channels additional private capital for conservation outcomes. • Investors foregone regular coupons fund conservation investment in two parks in South Africa, while also providing environmental and social benefits to local communities. • • In addition to return of principal and a small guaranteed return, investors potentially receive a conservation success payment at maturity (funded by the Global Environment Facility) based on rhino population growth rates. Nuveen was the lead investor in the transaction which included other institutional investors and individual investors from both Credit Suisse and Citi private banking. WCB Press Release USD 150 million 5-year Bond Summary Terms and Conditions Rating: Maturity: Total Amount: Settlement Date: Maturity Date: Issue Price: Conservation Investment Payment: Conservation Success Payment: Sole Structurer: Bookrunners: AAAP 5-year USD 150 million 03/31/2022 03/31/2027 94.84% Issuer will make payments totaling ZAR 152 million to the Park Managers to finance rhino conservation activities. Paid to investors at maturity based on rhino growth rates in two Parks. Maximum payment is US$13.76 million Credit Suisse Credit Suisse and Citibank, NA Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.
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