What are Green Bonds?

Green Bonds

• A recent innovation has been the rise of Green Bonds.
• Green bonds are set up by multinationals and organisations. The purpose is to advance environmental and climate focused projects.
• The funds raised with green bonds must be used for a specific purpose. Such as to help address environmental or climate change issues.
• Green Bonds is a rapidly growing part of the bond market, However it is still in its early stages.
• Read 10 Years of Green Bonds: Creating the Blueprint for Sustainability Across Capital Markets for a discussion of the history of Green Bonds
• This other article explains how green bonds work and the different bond types that have developed.

OVER TO YOU

• Go onto a publicly traded bond market, preferably one that is local but any bond market will do. Select one bond at random.
• Identify the bond’s key characteristics such as yield, coupon rate, or any significant features like floating rate or callable features.
• Based on your research, and your investment goals would this bond be a good fit for your investment portfolio?