- The IFC Forests Bond raised $152 million in 2016, denominated in USD, and was oversubscribed by a factor of two.
- Investors can choose to receive their annual coupon as cash, as carbon credits (VCUs) at a fixed price of $5 per credit, or as a combination of both.
- The bond supports the Kasigau Corridor REDD+ project in Kenya, which generates approximately 1.4 million tonnes of CO₂ emission reductions per year, with a project lifetime of 30 years.
- Over 5 million VCUs were delivered between 2016 and 2021.
- The Kasigau Corridor REDD+ project protects 200,000 hectares of forest and delivers verified community benefits to more than 10,000 people, including education, jobs, and health services.
- BHP Billiton provides a $12 million liquidity support mechanism, guaranteeing the purchase of any unsold carbon credits if investors opt for cash, ensuring five years of guaranteed REDD+ credit sales for the project.
- The bond is listed on the London Stock Exchange, has a five-year maturity, and pays a 1.546% fixed coupon.
- Major institutional buyers include CalSTRS, TIAA-CREF, QBE, and Treehouse.
- The structure de-risks REDD+ project financing by transferring project-level risk to IFC and providing guaranteed off-take for carbon credits.
IFC Forests Bonds Dashboard
Bond Size
$152M
Issued 2016, USD
Oversubscribed by 2x. Maturity: 5 years. Coupon: 1.546%.
Carbon Credits
5M VCUs
Delivered 2016–2021
Verified Carbon Units (VCUs) from Kasigau REDD+ project, Kenya.
Emissions Offset
1.4M tCO₂e/yr
2021-2025 avg.
Annual offset, independently verified (VCS). Project lifetime: 30 years.
Coupon Options
Cash / Carbon
Fixed $5/VCU
Investors choose cash, VCUs, or split. BHP provides $12M price support.
Bond Structure
- Issuer: IFC (AAA), listed LSE
- Coupon: 1.546% fixed, paid in cash or VCUs (carbon credits)
- Carbon Credit Source: Kasigau Corridor REDD+, Kenya
- Price Support: BHP Billiton, $12M put option for unsold credits
- Buyers: CalSTRS, TIAA-CREF, QBE, Treehouse, global institutional demand
Bond Flow
Investors → IFC → Kasigau REDD+ → Coupons (cash/carbon) → BHP price support for VCUs.
Investor Coupon Option Impact
Cash Coupon: 1.546% paid in USD, no carbon exposure.
Impact Metrics (2025)
Emissions Offset
1.4M tCO₂e/yr
Verified by VCS
Annualized, 2021-2025. 30-year project lifetime.
Forest Protected
200,000 ha
Kasigau, Kenya
Wildlife corridor, biodiversity hotspot, REDD+ certified.
Community Reached
>10,000
Education, jobs, health
Scholarships, eco-charcoal, organic textiles, health clinics.
Coupon Paid
1.546%
2021-2025
Annual, paid in cash or VCUs at $5/VCU.