In addition to supporting IBRD’s general sustainable development activities, World Bank (IBRD) outcome bonds provide investors with the opportunity to support specific development projects and outcomes. These outcome bonds harness private capital and transfer project performance risk to investors, who are rewarded if the underlying activities are successful.
IBRD outcome bonds can provide investors with:
- A sustainable development labeled investment that supports the World Bank’s sustainable development activities and projects globally
- A unique level of additionality and an opportunity to support specific projects or development themes
- Potential yield enhancement compared to ordinary IBRD bonds, with a direct link between the bond returns and outcomes of a particular project
- Credit enhancement, through full or partial principal protection from IBRD (AAA/Aaa issuer credit rating)
Outcome Bond Examples
Name | Size (Aggregate Nominal Amount) | More Information |
Plastic Waste Reduction Linked Bond | $100,000,000 | |
Emissions Reduction Linked Bond | $50,000,000 | |
Wildlife Conservation Bond | $150,000,000 | |
UNICEF Bond | $100,000,000 |
