Case study

Peace Bonds: bankable structures that can lower risk and enhance peace

Feasibility study of a new asset class: how a Peace Bond can be structured so that peace measures reduce project risk and improve the investment case.

Published: January 2022Authors: Interpeace and SEB

What it covers

The feasibility study that established the Peace Bond concept. Produced by Interpeace with SEB and funded by UK Aid, it examines whether a bond instrument that finances peace measures alongside a commercial project can be made bankable. Its centrepiece is a detailed feasibility case built on a real proposed 50 MW solar plant in northern Ghana supplying power to Burkina Faso, in which a realisable set of peace measures reduces the project’s discount rate by 200 basis points and improves its net present value by USD 6 million.

Related

Our partners

SidaGerman Federal Foreign OfficeSIPRIPeace Dividend InitiativeFAOKOISFund for PeaceAfrican Development Bank Group

The Finance for Peace Standards are set by an independent Standards Committee. No funder or partner shapes, approves or funds their content. Finance for Peace does not advise on, structure or make investments.

Phase 1 is supported by the Swedish Government.

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