World Bank Prices 14-Year Spekboom Restoration Outcome Bond in South Africa

Bond to help a program that aims to restore degraded land and create jobs

WASHINGTON, April 23, 2026 - The World Bank (International Bank for Reconstruction and Development, IBRD) today priced a $120 million Spekboom Restoration Outcome Bond that will unlock support for large-scale ecosystem restoration and job creation in South Africa's Eastern Cape province. Maturing in 2040, the bond is the World Bank's longest-dated outcome bond and provides investors with full principal protection and a coupon that includes a fixed rate component and potential additional variable components linked to the restoration of the native plant.

Spekboom, a succulent plant native to South Africa, is prized for its drought resilience and high carbon sequestration. Its restoration improves soil quality, water retention and climate resilience, while fostering microclimate and soil conditions needed to revitalize the biodiverse ecosystem that support other plant and animal species. The outcome bond has been structured to mobilize $25 million of private capital to support a 50,000 hectare scale-up of a spekboom project, designed, developed and operated by Imperative, a private-company specializing in ecosystem restoration. The project aims to restore degraded land and create 11,000 local jobs including through small and medium sized enterprises that will deliver spekboom harvesting, planting, monitoring and ongoing land management.

"Innovative financing is essential to address complex development challenges," said Anshula Kant, Managing Director and World Bank Group Chief Financial Officer. "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 bond's principal is fully protected by the triple-A credit strength of the World Bank, with the $120 million proceeds used to support the World Bank's sustainable development lending activities globally. Investors in the bond have agreed to receive a fixed coupon that is lower than the return on regular World Bank bonds of similar maturity. An amount equal to the remaining portion of the coupon that would otherwise have been paid to investors under a regular bond will be channeled to Imperative, through a hedge transaction with BNP Paribas, as upfront financing for the spekboom restoration project.

Amazon will purchase a large share of the carbon removal units (CRUs) expected to be generated by the spekboom project under a fixed price offtake agreement for more than a decade. An amount equal to a pre-determined percentage of the CRU revenue from such sales will be channeled back to bondholders, through BNP Paribas, in the form of CRU Linked Interest. Compared to a standard World Bank bond of similar maturity, the outcome bond offers investors the potential to earn a higher return if the project performs and generates CRU revenue as projected.

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

"We are pleased to have supported the World Bank on this innovative transaction that aims to channel private capital towards measurable environmental outcomes, while maintaining principal protection and a stable income profile for investors," said Frederic Zorzi, Global Head of Primary Market at BNP Paribas. "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."

"We are thrilled to continue our partnership with the World Bank and participate in the latest Outcome Bond for spekboom restoration given its attractive relative valuation and scalable structure. This investment will further display the potential that spekboom restoration presents to positively impact biodiversity degradation on the African Continent while also providing employment opportunities for local communities," said Stephen M. Liberatore, CFA Head of ESG/Impact for Global Fixed Income, Nuveen.

"AllianceBernstein is pleased to support another investment through the World Bank's innovative outcome bond structure, which meaningfully de-risks important ecosystem restoration projects by aligning incentives and securing commitments from a credible offtaker," said Erin Bigley, Chief Responsibility Officer, AllianceBernstein, AllianceBerstein.

"We are proud to participate in the Spekboom Restoration Outcome Bond as it supports nature-based solutions that generate environmental positive impact and create benefits for local communities. This investment is marking BNP Paribas Cardif's first participation in an outcome bond and contributes to our biodiversity roadmap. It demonstrates how sustainable finance can simultaneously protect ecosystems and empower the communities that depend on them." said Matthieu Bonte, Global Chief Investment Officer, BNP Paribas Cardif.

"We are delighted to partner again with the World bank and BNP Paribas to support for this large-scale ecosystem project in South Africa. While offering investors an attractive yield coupon, it will help deliver carbon sequestration, ecosystem recovery and biodiversity conservation," said Tony Trzcinka, Senior Portfolio Manager, Impax Asset Management.

"This marks our second outcome bond investment through our Nature and Social Outcomes strategy, showing how UK pension capital can support projects in emerging markets that bring together large-scale nature restoration with tangible social benefits, while delivering returns for pension savers. By partnering with the World Bank and BNP Paribas, the Spekboom Restoration Outcome Bond will restore degraded landscapes and support wider ecosystem recovery through carbon sequestration, while creating thousands of jobs and channelling meaningful investment into communities in South Africa's Eastern Cape, with a strong focus on opportunities for local businesses," said Jake Harper, Head of EM Private Debt, Asset Management, L&G.

"Mackenzie Investments is proud to partner with the World Bank on the Spekboom Restoration Outcome Bond. Spekboom is a remarkable native South African succulent, recognized by the United Nations as a World Restoration Flagship for its capacity to reverse desertification and capture carbon at scale. By linking investor returns directly to the project's carbon outcomes, this bond makes the connection between financial performance and environmental impact explicit and measurable. This is Mackenzie's fifth investment in the World Bank's outcome bond program, and we continue to believe that it is a structure with significant potential to scale and attract broader adoption across the industry," said Hadiza Djataou, Vice President and Portfolio Manager, Mackenzie Investments.

"Marking our second investment in an outcome-based structure, MetLife Investment Management is pleased to participate in the issuance of the World Bank's Spekboom Outcome Bond on behalf of clients who have impact focused investment objectives. The bond will provide vital funding for a nature-based project in South Africa, focused on the large-scale planting of native Spekboom to sequester carbon, restore degraded ecosystems, and support local livelihoods. This investment reflects the continued evolution of fixed income markets in facilitating opportunities to direct capital to impactful initiatives that explicitly links financial performance to measurable real-world outcomes, alongside clearly defined risk and return profiles. Crucially, these kinds of structures enable investors to tap into high-impact areas like targeted ecosystem restoration, effectively bridging the gap between mainstream capital markets and highly specific sustainability goals," said Todd Howard, Head of EMEA Fixed Income, MetLife Investment Management.

"Morgan Stanley Investment Management is pleased to support the World Bank's latest outcome bond. This transaction demonstrates once again the potential of capital markets to advance nature-based solutions at scale while delivering measurable environmental and social outcomes. By directly linking investor returns to project performance, the bond creates a clear and transparent pathway from financing to impact," said Anuj Gulati, Managing Director, Global Head of Fixed Income ESG Strategy and Research, Morgan Stanley Investment Management.

"This is yet another clear example of how Skandia and the capital markets can contribute to concrete climate solutions. Through this investment, we combine financial returns with measurable environmental benefits and long-term sustainable development," said Alexander Onica, Head of Fixed Income and Currency Management, Skandia.

Transaction Summary

About the World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody's/S&P), is an international organization. Created in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to end extreme poverty and promote shared prosperity on a livable planet. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing bonds in the international capital markets for over 75 years to fund programs and activities that achieve a positive impact. World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association. More information on the World Bank's Sustainable Development bonds is available at www.worldbank.org/debtsecurities and in the World Bank's Sustainable Development Bond Impact Report that describes how the World Bank engages with investors and raises awareness for specific development challenges.

Disclaimers

This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework, the World Bank's Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular World Bank projects or programs. Payments on the bonds described herein are not funded by any World Bank project or program.

Contact

Heike Reichelt
Head of Investor Relations, Ratings, and Sustainable Finance,
World Bank Group Treasury
[email protected]