The ESG Megatrend Meets Green Bonds #infographic

 

The ESG Megatrend Meets Green Bonds #infographic

Clearly, sustainable investment has been thrown into the limelight.

Increasingly, investors are seeing both financial and social imperatives for sustainable investment. In particular, the rapid growth of green bonds, a fixed income investment designed to raise funds for the environment or the climate, is booming.

Against the backdrop of a wider investment shift in ESGs (environmental, social and governance), the above infographic from Raconteur navigates the increasing market for green bonds.

For climate and environmental initiatives, green bonds collect money and are sold by states, companies, and financial institutions.

Initially, Multilateral Development Banks, including the European Investment Bank and the World Bank, introduced them to the market in 2007, although they had a slow start. In 2019, however, new green bond issues topped $258 billion globally, jumping 51 percent in one year.

There is a wide range of different debt instruments in the green bond market. Private placements, covered shares, and renewable loans are among these.

When the selling of bonds is made to private investors rather than by public offers, green private placements occur. On the other hand, green covered bonds are bonds that are backed by a sustainably based group of assets. Green loans are credit forms intended to fund green ventures.

Overall, it is possible to diversify green bonds through a variety of different industries.

The ESG Megatrend Meets Green Bonds #infographic

infographic by: www.visualcapitalist.com

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