Economics
Rhinos Come to the Bond Market, and Other Species May Follow
- Bond seen as test for creation of conservation debt market
- Yield will depend on population growth rate of the animals
The planned sale of a rhino impact bond, aimed at growing the population of the endangered black rhino, is seen by its backers as a test for the creation of a conservation debt market that could be used for everything from protecting species facing extinction to preserving wildlife areas.
The sale next year of the $50 million bond, the first financial instrument for species conservation, is being run by the Zoological Society of London and Conservation Capital. The company was founded in Kenya about 15 years ago seeking to create business and investment finance tools for conservation.