Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • What Is TREPS In Mutual Funds? | Business News
    • Mutual funds are taking cash calls—but are they working?
    • Investing in CIBC mutual funds
    • How To Buy Direct Mutual Funds Online In India | Business News
    • Top 3 Tax-saving ELSS Mutual Funds with Highest Returns: Rs 3.5 lakh invested in No. 1 fund has grown to Rs 12.66 lakh in just 5 years
    • Lum Sum vs Income Tax vs Inflation: What will be value of your Rs 1 lakh mutual fund investment in 20 years after paying tax, adjusting to inflation?
    • Invesco MF launches Income Plus Arbitrage Active Fund of Fund
    • SBI Mutual Fund launches AI chatbot ‘SmartAssist’ for WhatsApp-based investing
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Bonds»Investors Back $225M World Bank Bond For Amazon Reforestation And Carbon Removal
    Bonds

    Investors Back $225M World Bank Bond For Amazon Reforestation And Carbon Removal

    August 14, 2024


    The World Bank, through the International Bank for Reconstruction and Development (IBRD), has issued a $225 million Amazon Reforestation-Linked Bond, the largest outcome bond in its history, to support reforestation efforts in Brazil’s Amazon rainforest.

    This 9-year bond links investor returns to the generation of Carbon Removal Units (CRUs) derived from reforestation projects, marking the first bond to tie financial returns directly to carbon removal rather than the sale of carbon credits from avoided emissions.

    The bond aims to mobilize around $36 million to fund Mombak, a Brazilian company dedicated to reforesting the Amazon with native tree species, the World Bank said in a statement Tuesday.

    This initiative not only sequesters carbon but also promotes biodiversity and socioeconomic development within local communities.

    According to the issuer, the newly launched bond represents a new model for leveraging private capital in support of environmental goals.

    Investors are guaranteed a fixed coupon with an additional variable component tied to the CRUs generated by the projects.

    Relevant: Amazon Carbon Credit Scheme Exposed As Fake By Brazil Police Raid

    If successful, the bond could yield higher returns compared to similar World Bank bonds, contingent on the successful creation and sale of CRUs.

    Bond investors will waive a portion of their coupon payments, with those amounts redirected through a hedge transaction with lead manager HSBC (LSE: HSBA; NYSE: HSBC) to fund Mombak’s reforestation projects.

    This bond has attracted significant interest from private investors who are increasingly eager to align their financial goals with positive environmental impacts, the World Bank said.

    Leading investors, including Nuveen, T Rowe Price, Mackenzie Investments, and others, expressed their commitment to the bond, emphasizing the dual benefits of measurable environmental impact and potentially attractive financial returns.

    The bond underscores the growing trend of outcome-based financing in sustainable development, offering a promising template for future investments aimed at addressing climate change and promoting biodiversity.

    Read more: World Bank Announces New Outcome Bond To Fund Amazon Reforestation In Brazil



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Lombard Odier & Cie s’associe à BlueBay pour lancer un fonds sur les obligations souveraines

    July 2, 2025

    Commercialisation du fond Eiffel High Yield Low Carbon

    July 1, 2025

    Voici nos 12 idées de sorties à Lille et dans ses alentours pour ce dimanche 29 juin

    June 28, 2025
    Leave A Reply Cancel Reply

    Top Posts

    What Is TREPS In Mutual Funds? | Business News

    July 3, 2025

    Qu’est-ce qu’un green bond ?

    December 7, 2017

    les cat’ bonds deviennent incontournables

    September 5, 2018

    Quel est le rôle du service des impôts des particuliers (SIP) ?

    May 7, 2020
    Don't Miss
    Mutual Funds

    What Is TREPS In Mutual Funds? | Business News

    July 3, 2025

    Last Updated:July 03, 2025, 08:28 ISTTREPS or Treasury Bills Repurchase is an effective and secure…

    Mutual funds are taking cash calls—but are they working?

    July 2, 2025

    Investing in CIBC mutual funds

    July 2, 2025

    How To Buy Direct Mutual Funds Online In India | Business News

    July 2, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    62 Lakh Retail Investors Now Hold Yes Bank, Mutual Funds Raise Stake In Q2

    October 11, 2024

    Local Planning Initiatives Awarded $9.5 Million In Federal Funds

    August 18, 2024

    Les investisseurs se heurtent au risque politique en Turquie

    March 19, 2025
    Our Picks

    What Is TREPS In Mutual Funds? | Business News

    July 3, 2025

    Mutual funds are taking cash calls—but are they working?

    July 2, 2025

    Investing in CIBC mutual funds

    July 2, 2025
    Most Popular

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025

    ZIG, BUZZ, NANC, and KRUZ

    October 11, 2024
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.