Hi I will just summarize a few pointers that I have found online here!
These climate bonds, just like regular bonds, are used to finance projects or companies, but they are specifically used to finance projects that are used to address climate issues. So an example, of such bonds could be used to finance windfarms, hydroplants, renewable energy etc
The first few of such bonds were actually releaed by World Bank, European Investment Bank and the International Finance Corporation. Larger Corporations and state-owned enterprises have also released such bonds to finance their envrionmental projects.
Most of these bonds are just like regular bonds, with credit strength meausred by ratings from rating agencies such as S&P and Moody's, and with principal and interest payments. The market for these bonds are actually sizable at around $346bn.
From the investors point of view, the most notable benefit of investing in such bonds is that it is for envionrmental benefits and not really financial.
There was another post on green bonds recently, which if I'm not wrong is a subset of climate bonds. https://seedly.sg/questions/what-is-the-incenti...
Hi I will just summarize a few pointers that I have found online here!
These climate bonds, just like regular bonds, are used to finance projects or companies, but they are specifically used to finance projects that are used to address climate issues. So an example, of such bonds could be used to finance windfarms, hydroplants, renewable energy etc
The first few of such bonds were actually releaed by World Bank, European Investment Bank and the International Finance Corporation. Larger Corporations and state-owned enterprises have also released such bonds to finance their envrionmental projects.
Most of these bonds are just like regular bonds, with credit strength meausred by ratings from rating agencies such as S&P and Moody's, and with principal and interest payments. The market for these bonds are actually sizable at around $346bn.
From the investors point of view, the most notable benefit of investing in such bonds is that it is for envionrmental benefits and not really financial.
There was another post on green bonds recently, which if I'm not wrong is a subset of climate bonds. https://seedly.sg/questions/what-is-the-incenti...