It is a bond where the proceeds are used solely to finance eligible projects with positive environmental benefits. Green bonds emerged in 2013 and since then the total issuance volume accumulated to $1 trillion, or 1% of Global bonds market.
Green bond CBI
This is your opportunity
to attract green capital from international markets.
We help you choose projects and provide Second Opinion
on the issuance of green bonds under the Green Bond Principles.
What is a green bond?
Types of green financing projects
Sustainable water and wastewater management
Terrestrial and aquatic biodiversity conservation
Pollution prevention and control
Advantages of green bonds
Lower interest rates
Green bonds can attract capital at a lower rate compared to other financial instruments. This is due to high demand from investors for green instruments. On average, the interest rate advantage of a green bond is 0.3%.
A more diverse investor base
The range of investors interested in green bonds is broader than for other financial instruments. These investors will be more “sticky,” meaning they hold the debt they purchase longer. Green bonds also attract large institutional investors and pension funds because of their lower risk profile.
A green bond allows the issuer to positively associate its organization with efforts to increase financial flows for low-carbon projects and ensure the prosperity of future generations
Climate risk hedge
By purchasing green bonds, investors get an additional diversification away from oil-dependent assets in favor of climate projects that are rapidly growing in value.
Compliance with international standards
CBI certification allows issuers to demonstrate to the market that their bonds meet global standards for climate integrity, revenue management and transparency.
By issueing a green bond you signal to investors that you have a tangible contribution towards achieving the Sustainable Development Goals.