The Potential Role of Enhanced Bond Structures in Forest Climate Finance

This report develops innovative bond structures that respond to challenges currently limiting the financing of forest-based NDC activities, with the intention to catalyze significant increases in financing flows. The report sets out a detailed shor...

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Bibliographic Details
Main Author: World Bank
Format: Report
Language:English
Published: Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/551601508180348166/The-potential-role-of-enhanced-bond-structures-in-forest-climate-finance
http://hdl.handle.net/10986/28586
Description
Summary:This report develops innovative bond structures that respond to challenges currently limiting the financing of forest-based NDC activities, with the intention to catalyze significant increases in financing flows. The report sets out a detailed shortlist of three potential enhanced bond structures, which have the potential to catalyze funding across the gamut of forest-based nationally determined contribution (NDC) activities. The focus is on bond structures that blend donor-funded performance-based payments (PBP) alongside some upfront grant funding to improve the financial performance of the use of proceeds for issuers, and hence enable larger-scale financing from capital markets.