Rhino Bonds: Can Big Finance Really Save Big Beasts?
Friday, August 16, 2019
By Emily Horton
Investors’ appetite for funds that aim to improve the environment and society, as well as making money, has grown quickly in 2019 — to the extent that some are beginning to push quite unconventional products.
One such is the so-called Rhino Impact Bond, which is being coordinated by charity the Zoological Society of London and Conservation Capital, an environmental, social and governance funding consultant. It is billed as the first-ever financial instrument for species conservation and its surrounding habitat, and is due to launch next year.
Its advent comes amid growing interest in green and social-impact funds. Assets under management in the sector grew by 15% to $52bn during the first half of 2019, after rising just 1% through 2018, according to recent research from Fitch Ratings.
Although this still accounts for a fraction of the total $6tn in the money management industry, other financial instruments geared towards sustainability and charity are also gaining traction.
Photo courtesy of David Clode.