World Bank to issue bond to boost Amazon reforestation
SAO PAULO, June 13 (Reuters) – The World Bank said on Tuesday it will issue a new bond expected to raise some $200 million to support its sustainability activities and reforestation in Brazil’s Amazon, and has chosen HSBC (HSBA.L), opens new tab to structure the transaction.
The principal-protected bond will support the World Bank’s sustainable development activities and provide financing for reforestation projects selected by Brazilian startup Mombak through the foregone coupon payments.
World Bank to issue US$200 million in credit for Amazon reforestation
The bond will provide funding for pro-environmental initiatives selected by Brazilian startup Mombak
World Bank to issue $200 million bond for Amazon reforestation
The bond will finance reforestation initiatives selected by the Brazilian company Mombak, which buys degraded lands from farmers and ranchers
Mombak teams up with World Bank to raise $200 million in debt
Financial institution hired HSBC to attract investors for Brazilian startup projects
World Bank to issue $200 million bond to boost Amazon reforestation
The bond with protected capital will finance reforestation initiatives selected by the Brazilian company Mombak, which buys degraded lands from farmers and ranchers
Forest restoration projects are changing degraded areas in 3 Brazilian states
In total, there will be more than 10.7 million seedlings of species native to the Amazon and the Atlantic Forest. They will occupy an area equivalent to 20 thousand football fields.
Businesses that value standing forests are beginning to gain scale
Advancement of voluntary carbon credit market stimulates segment
Carbon measurement and offsetting become focus of startups, which await regulation
In addition to the “carbon farms” built in the Amazon to sell credits to large companies, Brazilian startups are working in other areas of this market with high growth potential in the coming decades
Can Forests Be More Profitable Than Beef?
Cattle ranches have ruled the Amazon for decades. Now, new companies are selling something else: the ability of trees to lock away planet-warming carbon.
See what the world’s largest company and a Formula 1 giant have to do with reforesting the Amazon
With 2,000 hectares reforested, Mombak already has a contract with Microsoft and McLaren
