The World Bank has settled its USD 200 million Clean Cooking Outcome Bond, following pricing on December 5, 2025. The bond, maturing on March 31, 2032, attracted over ten investors, including first-time participants in World Bank Outcome Bonds, reflecting growing demand for outcome-linked investments. Across the six World Bank Outcome Bonds issued to date, more than 25 investors have participated, with geographical distribution of North America 46%, Europe 40%, and Africa, Asia, and the Pacific 14%.
The bond is 100% principal protected, with proceeds supporting the World Bank’s sustainable development activities globally. Investors receive a fixed return lower than conventional World Bank bonds of similar maturity. An amount equal to the foregone return is “frontloaded” through a hedge with Standard Chartered Bank and directed to finance the distribution of cleaner cooking stoves in Ghana by UpEnergy. Investors also have the potential to earn a variable return linked to the sale of carbon credits generated from these activities.
The Clean Cooking Outcome Bond reflects rising investor interest in fixed-income instruments that deliver measurable social and environmental impact. It also marked the first participation by an African investor in a World Bank outcome bond. The transaction attracted notable investors including Mackenzie Investments, Nuveen, Rathbones, RBC BlueBay Asset Management, Skandia, Velliv, Fidelity, Legal & General, and ZEP-RE, demonstrating a broadening investor base for sustainable financial products.
Investors highlighted the bond’s unique combination of principal protection, measurable impact, and alignment with sustainable development goals. Fidelity emphasized its role in expanding access to cleaner cooking technologies in Ghana while contributing to emissions reductions. Legal & General noted the bond addresses the USD 8 billion funding gap for universal clean cooking access by 2030. Mackenzie Investments highlighted its support for scaling Internationally Transferred Mitigation Outcomes (ITMOs) under the Paris Agreement, while Nuveen emphasized the creation of high-quality ITMOs to help Ghana and Switzerland meet their climate commitments. Rathbones, RBC BlueBay, Skandia, Velliv, and ZEP-RE also underscored the bond’s potential to generate both financial returns and tangible social and environmental benefits, particularly in improving health, empowering women, and advancing climate action.
The World Bank, rated Aaa/AAA, has been issuing bonds in international capital markets for over 75 years to fund programs and activities that achieve measurable development impact. The Clean Cooking Outcome Bond is part of the Bank’s broader effort to provide sustainable investment opportunities aligned with the Sustainability Bond Guidelines and to channel capital toward initiatives that generate positive social, environmental, and climate outcomes.
Disclaimers note that this press release does not constitute an offer for sale of World Bank securities and that the net proceeds are not earmarked for specific projects. Payments on the bonds are not funded by any particular World Bank project or program.
