The World Bank's landmark $225 million Amazon Reforestation-Linked Outcome Bond, which is the World Bank's largest outcome bond to-date, has been recognised in two categories in the 2025 Sustainable Debt Awards: the Award for Innovation – bond structure (sustainability bond) and the Award for Innovation – use of proceeds (sustainability bond).

Issued in August 2024, by the International Bank for Reconstruction and Development (IBRD), the nine-year outcome bond links investor returns to the sale of carbon credits generated by reforestation projects in the Brazilian Amazon rainforest.

Investors will receive a minimum guaranteed annual coupon of 1.745% – lower than the traditional coupon offered to investors for regular World Bank issuances of similar maturity. If the reforestation projects perform as expected, investors receive an additional variable coupon from the World Bank linked to the sale of carbon credits from the projects. This outcome bond structure offers a greater potential financial return for investors than if they had invested in conventional bonds from the bank.

Tech giant Microsoft has agreed to purchase some of the carbon credits, as part of a separate agreement.

Through the bond approximately $36 million was raised for the Brazilian project developer, Mombak, that uses the funds to support reforestation of degraded lands in Brazil. The $36 million is generated from the bond investors foregone coupons (the differential between a World Bank ordinary coupon and the minimum guaranteed coupon paid on the outcome bond).

Nuveen, which was the largest investor in the bond with a $75 million commitment, said the deal is an "attractive relative valuation" for investors and offers a blueprint for similar transaction. Other investors included T. Rowe Price, Rathbone, Mackenzie Investments, Impax and AP2.

Judges noted that the project was "well targeted" and noted that the inclusion of Microsoft as an offtaker "derisks the sales of credits and increases its chances of success".