JOHANNESBURG, April 24 – The World Bank has partnered with Amazon.com Inc. to issue a $120 million, 14-year outcome-based bond aimed at restoring ecosystems in Eastern Cape Province.
The bond, sold to large institutional investors, links returns to carbon credits generated from rehabilitating land degraded by centuries of overgrazing. Amazon has agreed to purchase a significant portion of these credits, providing a key revenue stream for the project. Alongside the carbon-linked component, the bond offers a fixed interest rate of 2.41%.
Proceeds will support the restoration of Spekboom thickets, a native plant known for its strong carbon sequestration and water retention capabilities. The plant plays a vital role in reducing soil erosion and supporting biodiversity in degraded landscapes.
This issuance is the longest-tenor outcome-based bond by the World Bank and forms part of a broader effort to attract private capital into sustainability and biodiversity projects. Including this transaction, the institution has raised about $945 million through similar instruments tied to environmental outcomes such as reforestation, wildlife conservation, and plastic waste reduction.
The project is being implemented by Imperative, focusing on restoring the Albany thicket, a vast ecosystem spanning roughly 1.7 million hectares, much of which has been severely degraded. The initial phase will cover 10,000 hectares, with plans to expand to 50,000 hectares using proceeds from the bond.
Carbon credits generated through the project will be registered on the Verra platform. These credits represent measurable reductions or removals of carbon emissions, which companies like Amazon use to offset their environmental footprint.
BNP Paribas SA acted as the lead manager and bookrunner for the transaction. A portion of the funding, approximately $25 million, will be directed upfront to the restoration project through a structured hedge arrangement.
The bond attracted a wide range of global institutional investors, including asset managers and insurance firms, reflecting growing interest in financial instruments that combine environmental impact with competitive returns.
The initiative highlights a broader shift in development finance, where outcome-based structures are increasingly used to channel capital into projects that might otherwise struggle to attract direct investment, while aligning financial incentives with measurable environmental results.
