World Bank issues US$100 million new bond to tackle plastic waste
The World Bank priced a seven-year US$100 million, principal-protected Plastic Waste Reduction-Linked Bond. Two projects in Ghana and Indonesia are chosen to be invested.
The World Bank issued a bond that aims to tackle plastic waste problem.
How the bond works?
This innovative bond mobilizes private capital to support the financing of projects. Through the transaction, investors provide around US$14 million in up-front financing for the projects to increase capacity at existing facilities, expand new collection and recycling sites, and install food-grade recycling equipment.
In return, the bond provides investors with financial return linked to Plastic Waste Collection Credits, Plastic Waste Recycling Credits (collectively, plastic credits), and Verified Carbon Units (carbon credits) expected to be generated by the chosen projects.
The outcomes measured by the generation of plastic and carbon credits are issued on the Verra Registry.
The chosen projects
Two projects in Ghana and Indonesia are selected for the bond investment. Both projects aim to reduce and recycle plastic waste in vulnerable communities, cutting plastics leaking into nature and oceans.
In addition, the projects help improve local pollution and air quality, and reduce associated health impacts.
Both plastic collection and recycling projects in Ghana and Indonesia are not World Bank projects.
