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What are Green Bonds?

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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?
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How to Invest: Modern-Day Financial Decisions

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