Clifford Chance

Clifford Chance advises Citi on world-first plastic waste reduction-linked bond issued by the International Bank for Reconstruction and Development

Global law firm Clifford Chance advised Citigroup Global Markets Limited ("Citi") as arranger of the first bond for which interest amounts are linked to, and contingent upon, the generation of plastic waste collection credits and plastic waste recycling credits ("Plastic Credits"), which was issued by the International Bank for Reconstruction and Development ("IBRD"), part of the World Bank Group. A portion of interest on the bond is also linked to, and contingent upon, the generation of voluntary carbon units ("VCUs").

The Plastic Credits and VCUs will be generated by the verified collection and recycling of waste plastic in two projects, one in Indonesia and one in Ghana.

The successful execution of the deal adds to Clifford Chance's established track record of advising clients on cutting edge sustainability transactions. The transaction follows the issuance of the world's first bond linked to the generation of VCUs, also issued by IBRD, on which Clifford Chance advised Citi last year.

Deborah Zandstra, partner at Clifford Chance, who led on the transaction, said: "We are delighted to have advised Citi on another first of a kind transaction for IBRD. This unique initiative aligns financial, environmental, and social goals, fostering the recycling of waste plastic while generating plastic and carbon credits for coupon payments. The underlying projects, implemented in a social enterprise setting, are compelling as they simultaneously combat plastic pollution and advance eight United Nations Sustainable Development Goals."

Deborah Zandstra was assisted by senior associates James Kelton and Lucia Ferrer and trainee Anungo Tumennasan in the Debt Capital Markets Group, partner Adam Hedley and senior associate Katrina Moore in the Global Carbon Group and partner Caroline Dawson in the Financial Regulation Group.