At a glance
- Private bond investors would provide about 80% of the $125 billion target if the $100 billion private portion is met.
- The Netherlands pledged $500 million at COP17 as part of the sovereign commitments.
- Bond allocators will need to know whether the $7.8 billion in sovereign commitments sits in a first-loss or guarantee layer.
The Tropical Forest Finance Facility has assembled $7.8 billion in sovereign backing toward a $125 billion target. It expects about $100 billion of the total to come from private bond investors.
Private bond investors would provide about 80% of the $125 billion target if the $100 billion private portion is met. The Netherlands pledged $500 million at COP17 as part of the sovereign commitments.
Bond allocators will need to know whether the $7.8 billion in sovereign commitments sits in a first-loss or guarantee layer. The coupon, tenor and trigger points will determine whether private investors are buying nature exposure or sovereign credit risk.
Sovereign pledges cover 6% of the target; bond buyers are asked for 80%
Amounts secured and sought against the $125 billion target, in $B
- Actual
- Target
- Sovereign commitments$7.8B of $125B · 6.2%
- Sought from bond investors$100B of $125B · 80%
Show as table
| Item | Actual | Target | Of target |
|---|---|---|---|
| Sovereign commitments | $7.8B | $125B | 6.2% |
| Sought from bond investors | $100B | $125B | 80% |
Reported by The Wrap desk from ESG Capital Daily coverage. Published . Corrections