Q&A

The Wildlife Conservation Bond
Questions & Answers
What is the Wildlife Conservation Bond (WCB)?
The Wildlife Conservation Bond (WCB) aims to increase
black rhino populations in two protected areas in South
Africa, Addo Elephant National Park (AENP) and Great FishRiver Nature Reserve (GFRNR). The WCB is a pilot projectthat involves the issuance of an outcome-based WorldBank (International Bank for Reconstruction andDevelopment or IBRD) structured bond tofinanceconservation activities, and together with financing fromthe Global Environment Facility (GEF), transfers project riskfrom donors to investors. As a World Bank Sustainable
Development Bond, the WCB combines a ‘use of proceeds’bond that supports the financing of sustainable
development projects and programs in IBRD member
countries with an outcome-based mechanism thatfacilitates access to additional financing for conservationthat the parks would otherwise not have had access to.
Why focus on rhino conservation?
Rhinos are an “umbrella” species that depend on an intact
and healthy ecosystem. Conservation of rhinos has muchbroader benefits than for the species alone, helping toprotect ecosystems and many other species that share therhinos' habitat. The activities financed by this project will
help conserve an area of 153,000 hectares that is home to
many other species. The parks serve as a sanctuary forother fauna and flora species, serve as a carbon sink, andprotect water catchment areas. For example, the AENP has
diverse mammalian fauna, over 400 bird species, and over
13 endemic species of herpetofauna, and provides
sanctuary for pollinators that serve the local citrus industry,roughly 25% of South Africa’s citrus industry. GFRNR hostsmany pollinators, which support the agricultural industry
and local subsistence farmers. Protected areas also help
mitigate climate change and act as a buffer against extreme
weather events.
How big of a threat is poaching to rhinos?
Rhinos are a critically endangered species. Every day, threerhinos are slaughtered for their horns. Today, there are
only 5,600 black rhinos across the globe, a dramatic loss
from 100,000 black rhinos in 1960. While the rhino
population has doubled from a low of 2,400 in 1995 toroughly 5,600 today, COVID-19 threatens these gains dueto a severe reduction in tourism and a feared increase in

Photo credit: iStock.com/Ian Scottpoaching. The two parks have a strong track record of blackrhino conservation, however, investments are needed toconserve rhino habitat and enhance security measures toprotect the species from poaching.
How does the WCB help to protect and grow the rhino
population?
By facilitating access to additional funding that the parks
would otherwise not have access to, the WCB significantly
increases funding for the parks to scale up their activities
to protect and grow rhino populations. Project activities
include measures to increase supply and distribution ofwater, improve rhino security through enhancements instaffing, equipment, facilities, training, fence upgrades,
improved aerial support, communications, and nationaland regional coordination. Investors in the WCB will notreceive coupon payments on the bond. Instead, the WorldBank will make conservation investment payments totaling
about US$10 million to finance rhino conservation activities
at the two parks. Instead of receiving coupon payments on
the bond, investors will potentially receive a conservationsuccess payment at maturity based on the final rhino
population growth rate at maturity. Conservation successpayments are funded by the GEF and paid by the World
Bank, linked to the growth of the rhino population at thetwo parks.
How will communities benefit from the WCB project?
Communities will benefit from jobs provided through theWCB in a region that is severely impacted by COVID-19,affecting livelihoods. The GFRNR is half owned by the local
community, with a revenue sharing scheme for tourism

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For AENP, the community will benefit from not only thedirect and indirect jobs, but also from ZAR 2.6 million inproject investments for specific community interventions
and benefits to community members that participate in the“Working for Water,” “Working on Fire”, “Working on
Ecosystems and Environmental Monitors” programs.
Permanent employment opportunities will be provided,
including security and monitoring staffing, and community
members will also be employed on an ad hoc basis. Therewill also be employment opportunities during theconstruction phase of new infrastructure as well as
maintaining current infrastructure.
What is innovative about this project and financialinstrument?
The project is a first of its kind principal-protected,
outcome-based structured bond, where investors do notreceive coupon payments. Instead, the World Bank will
make conservation investment payments directly to thepark managers to help finance conservation activities. The
WCB c supports efforts to grow black rhino populations in
two parks in South Africa that have set targets for growing
these populations. In turn, if rhino growth is achieved
during the 5-year life of the project, investors have thepotential to receive a return on their investment in the formof conservation success payments payable at maturity. Ifrhino population growth rate targets are not met, investors
still receive their principal investment back when the bondmatures, but would not receive any conservation successpayments. The WCB taps a new source of funding forconservation as it engages private and institutional
investors, rather than donors alone, thereby transferring
project outcome risk from donors to investors. If proveneffective, this concept and structure could potentially bereplicated and adapted to address challenges at otherrhino sites, or for other wildlife species and development
challenges, more generally.
Why were the Addo Elephant National Park and Great
Fish River Nature Reserve chosen for this transaction?
These sites were selected given the importance for rhinoconservation, intervention strategies, track record, costeffectiveness, and risk profile. The black rhino population
numbers at the two sites represent a significant portion ofSouth Africa’s and the global black rhino population.
Further conservation investments will secure and grow thisimportant black rhino population. AENP has a strong trackrecord of black rhino conservation and is a major
conservation success story given the large-scale expansionof the park over the past 30 years, including throughfunding support from the GEF. GFRNR is a critical reserve
for the black rhino population in South Africa.

THE FOLLOWING IS A SUMMARY OF THE WORLD BANK’S WILDLIFE CONSERVATION BONDS (THE “NOTES”). IT IS NOT AN OFFER TO SELL THE NOTES OR AN INVITATION TO
OFFER TO BUY THE NOTES. THIS SUMMARY IS SEPARATE FROM, AND SHOULD NOT BE READ IN COMBINATION WITH, ANY OFFER OR SALE OF THE NOTES, WHICH WILL BEMADE IN COMPLIANCE WITH APPLICABLE LAWS AND UNDER ENTIRELY SEPARATE LEGAL DOCUMENTATION AND OFFERING MATERIALS. THIS SUMMARY IS VERY HIGHLEVEL FOR SIMPLICITY AND LEAVES OUT MATERIAL INFORMATION AND THE LEGAL DOCUMENTATION THAT GOVERN THE NOTES. POTENTIAL INVESTORS MUST OBTAIN ACOPY OF THE COMPLETE LEGAL DOCUMENTATION PURSUANT TO WHICH THE NOTES ARE ISSUED, INCLUDING THE WORLD BANK’S SEPTEMBER 2021 PROSPECTUSRELATING TO ITS GLOBAL DEBT ISSUANCE FACILITY AND THE FINAL TERMS FOR THE NOTES. POTENTIAL INVESTORS SHOULD NOT RELY ON THIS SUMMARY. BEFOREMAKING ANY INVESTMENT DECISION, POTENTIAL INVESTORS MUST REVIEW THE COMPLETE LEGAL DOCUMENTATION.

Contact: Michael Bennett, Manager, Market Solutions & Structured Finance, The World Bank Treasury
 mbennett1@worldbank.org  +1 (202) 458 5099 | Elisson Wright, Senior Environmental Finance Specialist, Environment,
1225 Connecticut Avenue NW,Natural Resources & Blue Economy  ewright1@worldbank.org  +1 (202) 473 3046
Washington, D.C., 20433, U.S.A.