World Bank: Expect ‘more and bigger’ outcomes-based bonds
- Impact Boards EM
- Apr 22
- 2 min read

The World Bank is planning more outcomes-based bonds after the success of its innovative plastic waste reduction bond, with expectations of bigger deals to come. Following its fourth outcomes-based bond, World Bank derivatives and structured finance head Michael Bennett told Environmental Finance there is already a “really robust” number of further transactions being developed. Bennett said the World Bank has a “nice looking pipeline” that includes a number of different transactions that build on their success with recent transactions – including the plastic waste reduction bond finalised last year, the carbon credit-linked bond issued in 2023 tied to water purification project, wildlife conservation-focused ‘rhino’ bond completed in 2022, and a UNICEF bond linked to its Covid-19 response in 2021.
“Definitely [expect] more transactions involving carbon credits, but different project types – not necessarily water purifiers,” Bennett said.
At the UN COP28 climate summit in December, new World Bank president Ajay Banga was among the influential figures – including Mark Carney and John Kerry – who argued that carbon credits are essential to combat climate change. At the time, Banga – who became president in June – said the World Bank was planning to do more with carbon credits in the future, including selling credits generated by projects developed by the bank. “Also, we are looking at some of these bonds – like the ‘rhino’ bond – that require a donor, as not every project is revenue producing. Some of these are wildlife structures as well, but the majority are not, and focus on health, the blue economy and various other themes.” Unlike the plastic waste reduction bond and carbon credit bond which generate revenue from the sale of credits on the Verra Registry to fund the outcome-based return for investors, the funds for the ‘rhino’ bond pay-for-success structure are funded by a grant from the Global Environmental Facility (GEF).
Read more about outcome-based bonds in the full article here.