In 2022, the World Bank issued the world’s first wildlife bond, raising $150 million for the conservation of black rhinos in two reserves in South Africa. Returns on those five-year bonds will be determined by the rate of population growth. It said at the time it was hopeful that the draft would be replicated…
Under the rhino bond structure the issuer makes donations to animal conservation instead of paying coupons and the bond buyers receive a payment based on a planned population growth target. Black rhino numbers have dropped to about 2,600 from 65,000 in 1970, and may have once been as high as 850,000, according to documents from the World Bank. They are smaller than the more common white rhinoceros.
Here’s more from Antony Sguazzin at Bloomberg. As the article notes, the Rand Merchant Bank is considering issuing wild dog and lion bonds, which are still under discussion.
Source link