week 6

Question 1

what are sustainable financing products

Answer 1

-Green bond/loan
-Social bond/loan
-Sustainable bond
- SLL/SLB

Question 2

what is a green bond/loan

Answer 2

proceeds are applied to finance new or existing green projects (deliver environmental benefits = renewable energy)
loan just means private

Question 3

what is a social bond/loan

Answer 3

proceeds are applied to finance new or existing social projects (ex: affordable housing)

Question 4

what is a sustainable bond

Answer 4

proceeds are applied to finance a combination of both green and social projects

Question 5

what is an SLL/SLB

Answer 5

focuses on ESG, do not require the proceeds to be used for a specific project, but the financial characteristics are linked to borrowers performance

Question 6

what is a transition loan/bond

Answer 6

funds provided to company that are in the process of becoming more green, funds to reduce carbon emissions