• Published on 29 January 2024
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Citi led $100M plastic waste reduction-linked bond

Citi acted as lead manager for a recent World Bank International Bank for Reconstruction and Development (IBRD) transaction, pricing a seven-year $100 million, principal-protected plastic waste reduction-linked bond.

This innovative bond provides investors with a financial return linked to plastic waste collection credits, plastic waste recycling credits, (collectively, plastic credits), and voluntary carbon units (carbon credits) expected to be generated by two projects. The selected projects in Ghana and Indonesia aim to reduce and recycle plastic waste in vulnerable communities, cutting plastics leaking into nature and oceans. Citi acted as lead manager for the transaction.

Philip Brown, global head of sustainable debt capital markets at Citi, said: “I am incredibly proud of the collaboration between the World Bank, Plastic Collective, and Citi in launching this fourth Outcome Bond. Our collective effort innovatively uses VERRA-registered plastic credits to support two projects to reduce plastic pollution -- a huge global challenge with particularly devastating impacts on emerging markets. This Outcome Bond allows fixed income investors to support development projects that would otherwise struggle to secure financing. We’re also responding to investor appetite for transactions with direct and quantifiable development impact. We are hopeful that these transactions will inspire others - and drive further positive change.”

Re-disseminated by The Asian Banker