A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects. These bonds are typically asset-linked and backed by the issuing entity’s balance sheet. Green Bond is a debt instrument issued to raise funds from the investors for green initiatives. The proceeds of a Green Bond are allocated for financing green projects.

• Green bonds allow investors to invest their funds in projects that focus on sustainability.
• improve the issuer’s reputation as they can promote themselves, thereby showcasing their dedication to sustainable development.