In 2022, the World Bank issued the world’s first wildlife bond, raising $150 million that will be partially used for the conservation of black rhinos in two reserves in South Africa. The yields on these five-year bonds will be determined by the rate of population growth. She said at the time that she hoped this structure would be emulated…
Under the rhino bond structure, the issuer contributes to animal conservation instead of paying coupons and buyers of the bond receive payment based on predefined population growth targets. Black rhino numbers have fallen to about 2,600 from 65,000 in 1970, and may have reached 850,000, according to World Bank documents. They are smaller than the more common white rhino.
Here is more from Antony Sguazzin on Bloomberg. As the article notes, Rand Merchant Bank is also considering issuing wild dog and lion bonds, the exact structure of which is still under discussion.
