Linklaters advises World Bank on first-of-its-kind carbon removal bond to fund Amazon reforestation

Linklaters has advised the World Bank (International Bank for Reconstruction and Development, IBRD) on the issuance of its nine-year US$225 million, principal-protected Amazon Reforestation-Linked Bond – the largest World Bank outcome bond ever. 

The bond will provide investors with a coupon that includes a fixed guaranteed component and a variable component linked to the generation of Carbon Removal Units (CRUs) from reforestation projects in the Amazon rainforest regions of Brazil. 

It is the first bond linking investors’ financial return to the removal of carbon from the atmosphere, differing from past transactions linked to the sale of carbon credits from avoided emissions. 

For more information, see our press release.