World Bank Launches $120 Million Ecosystem Restoration Bond Backed by Amazon Carbon Removal Deal

On 27 April 2026,the World Bank Group successfully priced a $120 million “Spekboom Restoration Outcome Bond,” its longest-dated outcome-based instrument to date, maturing in 2040. This innovative structure leverages the World Bank’s AAA credit rating to offer full principal protection while mobilizing approximately $25 million in private capital for a 50,000-hectare restoration project in South Africa’s Eastern Cape.This bond is designed to bridge the gap between institutional liquidity and environmental impact, the bond utilizes a hedge transaction arranged by BNP Paribas. Investors will receive a below-market fixed coupon, with additional yield potential linked to carbon removal unit revenues generated via a long-term offtake agreement with Amazon.Beyond environmental returns on enhancing biodiversity and climate resilience, the initiative is also projected to create 11,000 local jobs, demonstrating a sophisticated model for aligning capital market returns with measurable socioeconomic and ecological outcomes.

Source:https://www.esgtoday.com/world-bank-launches-120-million-ecosystem-restoration-bond-backed-by-amazon-carbon-removal-deal/