WB introduces USD 100mn Plastic Waste Reduction-Linked Bond to Tackle Plastic Pollution

Current Context: The World Bank (International Bank for Reconstruction and Development, IBRD) has indeed introduced a seven-year $100 million, principal-protected Plastic Waste Reduction-Linked Bond on 24th January 2024.

• 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.
• The bond is 100% principal protected with the $100 million proceeds used to support the World Bank’s sustainable development activities globally.
• The plastic collection and recycling projects in Ghana and Indonesia are not World Bank projects.

Question:

Q.1 What is the value of the Plastic Waste Reduction-Linked Bond introduced by the World Bank?
a. $100 million
b. $50 million
c. $150 million
d. $200 million