WASHINGTON DC, November 27, 2019. The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has made the fourth repayment of bonds issued under the Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) in exchange for eligible emission reductions.
The repayment amount of US$13 million is linked to the reduction of emissions from methane and nitrous oxide at twenty project sites in Brazil, Chile, Egypt, Malaysia, Mexico and Thailand, representing over five million tons worth of eligible carbon credits.
The PAF is an innovative program introduced in 2015 that uses auctions and price guarantees, delivered in the form of bonds, to promote private sector investment in climate action. The PAF supports landfills, wastewater treatment, biogas utilization, and nitrous oxide abatement at nitric acid plants (not adipic acid) around the world.
To date, US$37.3 million have been paid to investors in exchange for carbon credits representing 14.1 million tons of CO2. The carbon credits represent the amount of harmful gases companies have prevented from being released in the atmosphere.
The PAF recently announced that it will host a fourth auction that will focus on methane-reducing projects from landfill, animal waste, and wastewater sites. The bonds issued from PAF auctions will continue to make payments through 2020.
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 189 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing bonds in the international capital markets for over 70 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.
Contact
Heike Reichelt, Head of Investor Relations and New Products
The World Bank Treasury
