Green bonds are debt instruments that finance projects with environmental benefits. Issuers can be companies, governments or agencies that commit to using the proceeds exclusively for financing climate- or environmentrelated projects, assets or activities. This commitment is what sets green bonds apart from traditional bonds.
Green bond holders have the same recourse to the issuer. Essentially, they are standard bonds with an additional green element. Green bonds come in short- or long-dated maturities and have various types of coupons and yields.
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