Citi Plastic Collective Plastic outcome bond

Terms

Announced

24 Jan 2024

Instrument

Debt · Outcome bondA bond whose return is linked to the credits the project delivers.

Amount

US$14.0mReported as US$14m distributed

Source

worldbank.org

Parties

Project developer

Plastic Collective

Country

Multiple

Capital providers

Capital providers and the amount counted for each

Party	Role	Amount	Basis
Velliv	Bond investor	US$2.80m	Estimated: an even share, 1 of 5
Skandia	Bond investor	US$2.80m	Estimated: an even share, 1 of 5
T. Rowe Price	Bond investor	US$2.80m	Estimated: an even share, 1 of 5
Mackenzie Investments	Bond investor	US$2.80m	Estimated: an even share, 1 of 5
Muzinich & Co	Bond investor	US$2.80m	Estimated: an even share, 1 of 5

Arranged by

Arrangers and what each arranged

Party	Role	Arranged	Basis
Citi	Arranger	US$14.0m	Sole arranger: the whole transaction

Carbon

Pathway

Waste, landfill and methane capture

Project type as recorded

Other

Backed by offtakes from

• Citi

What happened

a seven-year $100 million, principal-protected Plastic Waste Reduction-Linked Bond. This was the first outcome bond issued that had returns linked to plastic credit and carbon credit delivery. The transaction provided approximately $14 million in upfront financing to Plastic Collective UK, which in turn supported two specific community-based waste collection and recycling projects managed by Plastic Collective UK in Ghana and Indonesia that were expected to collect 230,000 tons of plastic waste (recycling 180,000 tons) and abate over 100,000 tons of CO₂e over a 10-year period

Kumo note

World Bank outcome bond arranged by Citi. Structurally the first of the outcome bonds, with many elements that would not be accepted by investors in the newer structures, which carry much more investor protection. (one of which was that bond investors were indirectly exposed to the plastic credit price)

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