So what is a green bond? And is it something you would want to invest in? Read on to find out more about this new initiative and framework, and the latest investment opportunity in town.
What is a Green Bond?
A green bond is just like any other bond, a debt obligation typically asset-linked and backed by the issuer’s balance sheet. The ‘green’ in its name should give its main purpose away, as green bonds strive to raise funds for environmental and sustainability initiatives and developments.
To summarise, they are financial instruments that investors can buy in order to receive payouts while the proceeds raised from the bonds would be directed towards sustainable development projects.
Types of Green Bonds
There are many types of green bonds worldwide, and they include, but are not limited to the following:
1) “Use of Proceeds” bond
This is a standard debt obligation, and is secured by assets....