Federico, a Junior Analyst at the World Bank, shared insights into his background and involvement in tackling plastic pollution through innovative financial instruments. Born in Italy, Federico studied economics and finance at Bocconi University before interning at the World Bank Treasury. He later joined the Structured Finance and Market Solutions Team within the Capital Markets Department.
Federico's team recently issued a $100 million, 7-year Plastic Waste Reduction Linked Bond to support two plastic recycling projects in Indonesia and Ghana. The bond mobilizes development capital by linking investor returns to project performance. Investors forego part of their ordinary coupon for an upfront amount invested in expanding recycling facilities and activities. They receive outcome-based payments linked to sales of plastic and carbon credits generated by the projects.
Federico explained his personal connection to marine environments: "Growing up in a small town along the Mediterranean, I have always felt a strong connection with the sea." His desire to protect these waters fueled his interest in combating plastic pollution.
The bond aims not only to reduce plastic waste but also to improve health, sanitation, and employment opportunities for women microentrepreneurs in local communities. Federico noted that such initiatives align with UN Sustainable Development Goals (SDGs) and aim to mobilize private sector capital towards sustainable projects.
As a Junior Analyst, Federico contributed by participating in early-stage calls with project developers, working on financial structures, preparing communication materials post-issuance, and engaging with stakeholders at international events like INC4.
Reflecting on challenges faced early in his career, Federico expressed gratitude for his team's support: "I initially felt overwhelmed... my team provided me tremendous support throughout my time as an analyst."
Looking ahead, Federico is eager to continue leveraging finance for positive global impact: "Working with innovative markets like carbon and plastic credit markets has taught me how to be ambitious and creative."