The World Bank has settled its USD 200 million Clean Cooking Outcome Bond, following the pricing on December 5, 2025. The bond, which matures on March 31, 2032, attracted participation from over ten investors, including some new to World Bank Outcome Bonds. This reflects an increasing interest in outcome-linked investments among investors.
According to the World Bank, more than 25 investors have participated across its six outcome bonds issued so far. The geographic distribution of investment for this bond was 46% from North America, 40% from Europe, and 14% from Africa, Asia, and the Pacific.
The principal on the bond is fully protected. Proceeds will support the World Bank’s sustainable development activities globally. Investors will receive a fixed return lower than typical World Bank bonds of similar maturity. The difference in returns will be frontloaded through a hedge transaction with Standard Chartered Bank and directed to support cleaner cooking stove distribution in Ghana by UpEnergy. Investors can also earn variable returns based on carbon credits generated by these activities.
The bond addresses investor demand for financial instruments that provide measurable social and environmental impact. It also marks the first time an African investor has participated in a World Bank outcome bond. Notable participants include Mackenzie Investments, Nuveen, Rathbones, RBC BlueBay Asset Management, Skandia, Velliv, as well as Fidelity, Legal & General (L&G), and ZepRe.
Kris Atkinson of Fidelity International said: “We are delighted to support the World Bank's new Clean Cooking Outcome Bond through our sustainable fixed income fund range, including our flagship Climate Transition and Social Bond strategies. This innovative, outcome-linked structure aligns with our commitment to mobilising capital towards impactful sustainable solutions, helping expand access to cleaner cooking technologies for households in Ghana while contributing to meaningful emissions reductions. We are always proud to back transactions which are driving innovation in sustainable fixed income investing and demonstrate how financial innovation can deliver measurable development and investment outcomes.”
Jake Harper at Legal & General commented: “This marks L&G’s first outcome bond investment, and we’re proud to partner with the World Bank and Standard Chartered to support an important cause. Harmful cooking practices impact health, the environment, and livelihoods, yet the Clean Cooking Alliance estimates a USD 8 billion funding gap to achieve universal access to clean cooking by 2030. Through our Nature & Social Outcomes strategy, we invest on behalf of our Defined Contribution members, demonstrating how pension capital can deliver measurable social impact while generating positive returns for retirement members.”
Hadiza Djataou at Mackenzie Investments stated: “Mackenzie Investments is proud to partner with the World Bank on the Clean Cooking Outcome Bond. This innovative transaction, which helps fund the mass distribution of electric and improved charcoal cookstoves in Ghana, helps reduce emissions and represents a meaningful step forward in scaling the global adoption of Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement. By directly linking investor capital to measurable climate outcomes, the bond advances multiple sustainable development goals while delivering a compelling risk-adjusted return profile. Mackenzie is confident that the bond’s combined environmental and investment attributes will generate strong value for both society and our clients.”
Stephen M. Liberatore at Nuveen said: “We are pleased to participate in this innovative transaction given its attractive relative valuation, strong verification process and comprehensive impact reporting alongside industry leading partners. We are especially excited to support the operationalization of Article 6.2 of the Paris Agreement by investing in a transaction that will create high-quality Internationally Transferred Mitigation Outcomes (ITMOs), helping Ghana and Switzerland collaborate to meet their Nationally Determined Contributions (NDCs) under the accord.”
Bryn Jones at Rathbones Asset Management added: “The Rathbone Ethical Bond and Rathbone Greenbank Global Sustainable Bond funds are pleased to support the World Bank on another outcome bond. The new innovative structure offers principal protection from the World Bank, and at the same time supports the funding to clean cooking projects in Ghana through the frontloaded portion of the coupon, generating carbon credits; Rathbones continue to support bond structures that are ways of dealing with the Anthropocene.”
Harrison Hill at RBC BlueBay Asset Management said: “Our investment in the World Bank Clean Cooking Outcome Bond is another tangible example of how the fixed income markets are evolving and facilitating opportunities to direct capital to impactful initiatives. In this case improving the everyday lives for many people in Ghana; funding programs specifically targeted at replacing polluting stoves and fuels with modern cleaner cooking solutions at scale. For us this is a natural evolution of ‘outcome bond’ structures we have historically invested in such as biodiversity and reforestation – retaining principal protection and a clear risk/return profile while explicitly linking part of economic value to real‑world development outcomes.”
Alexander Onica at Skandia commented: “By being part of this transaction we deploy capital where it makes most impact. We are actively supporting innovative projects that have real environmental and social outcomes. Financial performance and responsibility go hand in hand creating value that extends beyond traditional returns.”
Lea Vaisalo at Velliv Pension said: “Velliv is very pleased to support another impact investment through World Bank’s innovative outcome bond structure. The World Bank Clean Cooking Outcome Bond will provide cleaner and more fuel-efficient cookstoves for local population of Ghana in order to support country’s energy transition and displace polluting inefficient cooking practices. In addition bonds provide attractive risk-adjusted return for our pension savers.”
Hope Murera at ZEP-RE stated: “ZEP-RE is proud to be only African investor in World Bank-backed Clean Cooking Outcome Bond focused on Africa. This innovative Outcome Bond allows us invest our capital where it can make most impact on development: shifting clean cooking helps safeguard environment produces measurable climate benefits advances Sustainable Development Goals (“SDGs”) transforms lives by enhancing health particularly women empowers women enables them gain economic resources both time money We are honoured contribute outcomes strengthen continent’s resilience.”
The net proceeds from these bonds will not be earmarked or committed for specific projects or programs but will instead finance overall sustainable development activities worldwide.