The World Bank announced that it has priced a $225 million bond, with financial returns to investors linked to the generation of carbon removal units (CRUs) from reforestation projects in Brazil's Amazon rainforest.
The transaction marks the first bond to link financial returns to the removal of carbon from the atmosphere ' compared with prior bonds tied to carbon credits, from avoided emissions ' as well as the World Bank's largest-ever outcome bond. Under the terms of the 9-year, 100% principal-protected bond, investors will receive a coupon consisting of a fixed guaranteed component, and a variable component tied to CRUs generated by reforestation projects by Brazil-based company Mombak.
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