Rhino Bonds

The number of black rhinos in the wild has fallen from 65,000 in the 1970s to about 5,500, putting the species at risk of extinction. Conservation Capital, which aims to maintain and even improve conservation areas, has come up with a novel approach to help increase the black rhino population in the wild, namely rhino bonds. Fifty million dollars worth of rhino bonds were sold, with the goal of increasing the black rhino population in Kenya and South Africa. Investors in the bond will receive payments based on an "outcome payments" model, meaning investor's return will be based on the black rhino population growth over the next five years. In other words, the more the black rhino population increases, the higher the return will be. The sale of this bond may lead to future bond sales based conservation outcomes.