Forest-Backed Bonds Proof of Concept Study

Forest-Backed Bonds Proof of Concept Study [PDF]

140 pages | © August 2007 IFC, DfID | Complimentary

This report explores how conventional structured finance methods may improve the access long-term finance for natural tropical forests. A forest-backed bond structured around different forest and forest related assets, portfolio diversification, environmental/ecosystem payment flows and third party insurance for both timber and the environmental/ecosystem payment flows, could deliver the up-front capital needed to secure long term tropical sustainable forest management and reduce the economic bias towards unsustainable extraction resulting from expensive local bank loans or equity financing.

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Supplemental information:

• Forest-Backed Bonds Proof of Concept Study - Executive Summary [PDF]
• Issue Brief: Forest-Backed Bonds Proof of Concept Study [PDF]