World Bank Bonds Back Ghana Clean‑Cooking Initiative

The World Bank has priced a US$200 million Clean Cooking Outcome Bond that matures on 31 March 2032, targeting the distribution of over 400,000 cleaner cookstoves to more than one million Ghanaian households.

The bond’s coupon combines a fixed‑rate component with a variable element tied to carbon‑credit sales generated by the cookstoves. A portion of the coupon is front‑loaded and redirected to fund the projects, while the remaining payments flow to investors.

“This transaction shows how investors can align financial returns with tangible development outcomes,” Anshula Kant, Managing Director and World Bank Group Chief Financial Officer, said.

Approximately US$30.5 million of private capital is being mobilised, with East‑Africa‑based UpEnergy designing and implementing the projects that will reach an estimated 1.3 million people, cutting reliance on biomass and lowering greenhouse‑gas emissions.

“The US$200 million size and diverse investor base underscore the success of this innovative transaction,” Henrik Raber, Global Head of Global Banking at Standard Chartered, said.

The initiative is expected to reduce household air pollution, improve health outcomes and create local jobs through the manufacture and distribution of improved and electric cookstoves.

The bond is 100 percent principal‑protected, with proceeds supporting World Bank‑financed sustainable‑development activities worldwide. The projects, authorised by the governments of Ghana and Switzerland, will generate Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement.

“We are pleased to support the operationalisation of Article 6.2 and help Ghana and Switzerland meet their NDCs,” Stephen M. Liberatore, CFA, Head of ESG Impact Global Fixed Income at Nuveen, explained.

Investors such as Nuveen, Skandia, Mackenzie Investments, Velliv, Legal & General, Rathbones and RBC Blue Bay have also committed, citing the bond’s risk‑adjusted returns and measurable climate impact.

By linking cash flows to verified carbon credits, the Clean Cooking Outcome Bond provides a new model for channeling private capital into climate‑smart development, paving the way for similar outcome‑bond structures across Africa.

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