A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called :
A
Green Bond
B
Social Bond
C
Sustainability Bond
Correct answer
D
Sovereign Bond
Explanation
Under ICMA guidelines, a sustainability bond finances or refinances a combination of green (environmental) and social projects. Green bonds fund only environmental projects, social bonds fund only social projects, and sovereign bonds are any debt issued by a national government.
Financial MarketsThematic bondsSustainability bondGreen bondSocial bondICMA principlesESG finance