Green Bonds
Green Bonds are any type of bond instrument where the proceeds – or an amount equal to the net proceeds – will be exclusively applied to finance or re-finance projects with clear environmental benefits and which are aligned with the Core Components of the GBP. Eligible Green Project categories include (but are not limited to):
Social Bonds
Social Bonds are any type of bond instrument where the proceeds – or an amount equal to the net proceeds – will be exclusively applied to finance projects that directly aim to address or mitigate a specific social issue and/or seek to achieve positive social outcomes, especially but not exclusively for a target population(s) and are aligned with the Core Components of the SBP. Social Project categories include (but are not limited to):
Sustainability Bonds
Sustainability Bonds are any type of bond instrument where the proceeds – or an amount equal to the net proceeds – will be exclusively applied to finance or re-finance a combination of Green and Social Projects and which are aligned with the Core Components of the GBP and SBP.
Sustainability-Linked Bonds
Sustainability-Linked Bonds are any type of bond instrument for which the financial and/or structural characteristics (e.g. coupon, maturity, repayment amount) can vary depending on whether the issuer achieves predefined Sustainability/Environmental and/or Social and/or Governance (ESG) objectives within a predefined timeline, and which are aligned with the Core Components on the SLBP. While the proceeds of Sustainability-Linked Bonds are typically designated for general corporate purposes, (or for general budgetary needs for sovereign SLBs) it is possible to combine a “use of proceeds” approach with a Sustainability-Linked Bond approach, if an issuer chooses to earmark the proceeds of their sustainability-linked bond to specific projects, and where these are eligible green and/or social projects, by aligning their bonds simultaneously with all the Core Components of the GBP/SBP/SBG and the SLBP.
