The World Bank Group announced that it has raised $120 million through the issuance of a new “Spekboom Restoration Outcome Bond,” aimed at financing large-scale ecosystem restoration and job creation in South Africa’s Eastern Cape province, with the new bond underpinned by an Amazon carbon removal offtake agreement.

The World Bank said that the bond, maturing in 2040, is its longest-dated outcome bond to date, offering investors full principal protection alongside a fixed coupon and an additional return linked to revenues generated from carbon credit sales to Amazon and overall project performance.

Proceeds from the new offering will support the restoration of spekboom, a native plant known for its high carbon sequestration capacity.

Spekboom is valued for its drought resilience and high carbon sequestration capacity. Its restoration enhances soil quality, improves water retention, and strengthens climate resilience, while supporting the development of microclimates and soil conditions that help restore biodiversity and enable the recovery of plant and animal ecosystems.

According to the World Bank, the bond is designed to mobilize approximately $25 million in private capital to scale a 50,000-hectare restoration project developed and operated by ecosystem restoration company Imperative. The initiative is expected to restore degraded land and create approximately 11,000 local jobs across spekboom planting, harvesting, monitoring, and land management activities.

Anshula Kant, Managing Director and World Bank Group Chief Financial Officer said:

“This outcome bond shows how capital markets can be mobilized to support large land restoration projects while aligning investor returns with measurable results that strengthen livelihoods and create jobs.”

The World Bank said that the bond structure leverages the World Bank’s AAA credit rating to protect investor principal, while redirecting a portion of foregone coupon payments to fund upfront project costs via a hedge transaction arranged with BNP Paribas. Investors will receive a below-market fixed coupon, with additional returns linked to carbon removal unit revenues generated through Amazon’s offtake agreement, which is expected to run for over a decade.

BNP Paribas is the sole Lead Manager and Bookrunner for the transaction.

Frederic Zorzi, Global Head of Primary Market at BNP Paribas said:

“The structure illustrates how a collaborative approach – bringing together the World Bank, Amazon and institutional investors – can accelerate private capital mobilization while advancing the World Bank’s development objectives and provide investors with a product that aligns perfectly with their mandates and sustainability goals.”

Anshula Kant, Managing Director and World Bank Group Chief Financial Officer added:

“This outcome bond shows how capital markets can be mobilized to support large land restoration projects while aligning investor returns with measurable results that strengthen livelihoods and create jobs.”