After the success of its Rhino bond, the World Bank revamped it with a USD50mn Emission Reduction-Linked Bond that will channel up-front financing to low-carbon development projects generating carbon credits like the water purification project in Vietnam. As with any other sustainable development bond issued by the International Bank for Reconstruction and Development (IBRD), proceeds from the deal will be diverted to World Bank projects. But the coupon payments that would have been paid to investors will be used to fund the manufacture of water purification devices in Vietnam. Then bond investors will earn a return linked to the issuance of carbon credits from Vietnam's water purifier projects.

Source: carboncredits