Sustainability-linked Bond

	Sustainability-linked Bond A Sustainability-linked bond (SLB) is a fixed income instrument (Bond) where its financial and/or structural characteristics are tied to predefined Sustainability/ESG objectives. The objectives are measured through predefined Key Performance Indicators (KPIs) and evaluated against predefined Sustainability Performance Targets (SPTs). The proceeds of SLBs are intended for general purposes, and the use of proceeds is not determinative in their categorization. Bonds where the proceeds are used to finance or re-finance green projects, social projects or a combination of both are called Green, social and Sustainability bonds respectively, and should not be confused with SLBs. Sustainability-Linked Bond Principles The Sustainability-Linked Bond Principles are voluntary process guidelines that provide best practices and recommendations for financial instruments to incorporate forward-looking sustainability performance. They are expected to play a key role in the development of the Sust ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
picture info	Bond (finance) In finance, a bond is a type of security under which the issuer ( debtor) owes the holder ( creditor) a debt, and is obliged – depending on the terms – to repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time. The interest is usually payable at fixed intervals: semiannual, annual, and less often at other periods. Thus, a bond is a form of loan or IOU. Bonds provide the borrower with external funds to finance long-term investments or, in the case of government bonds, to finance current expenditure. Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in a company (i.e. they are owners), whereas bondholders have a creditor stake in a company (i.e. they are lenders). As creditors, bondholders have priority over stockholders. This means they will be repaid in advance of stockholders, but will rank behind s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Environmental, Social And Corporate Governance ESG (environmental, social, and corporate governance) data reflect the negative externalities (costs to others) caused by an organization with respect to the environment, to society and to corporate governance. ESG data can be used by investors to assess the material risk the organization is taking and by the organization itself as metrics for strategic and managerial purposes. Investors may also use ESG data beyond assessing material risks to the organization in their evaluation of enterprise value, specifically by designing models based on assumptions that the identification, assessment and management of sustainability-related risks and opportunities in respect to all organizational stakeholders leads to higher long-term risk-adjusted return. Organizational stakeholders include but not limited to customers, suppliers, employees, leadership, and the environment. Since 2020, there has been accelerating interest in overlaying ESG data with the Sustainable Development Goals (SDG ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Climate Bond Green bonds (also known as climate bonds) are fixed-income financial instruments ( bonds) which are used to fund projects that have positive environmental and/or climate benefits. They follow the Green Bond Principles stated by the International Capital Market Association (ICMA), and the proceeds from the issuance of which are to be used for the pre-specified types of project They differ from Sustainability Bonds in that the latter also needs to have a positive social outcome, besides simply having a positive impact on the environment. History Climate bonds are a relatively new asset class, but they are growing rapidly.Yves Hulmann"2016, l'année de l'essor des obligations vertes", ''Le temps'', 20 December 2016 (page visited on 20 December 2016). The total volume of climate bonds was estimated at 160 billions of dollars on 2016; of which 70 billions were issued in 2016. The labelled volume of bonds issued in 2019 was US$255 billion. Climate and green bonds have now been issu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Social Bond Social organisms, including human(s), live collectively in interacting populations. This interaction is considered social whether they are aware of it or not, and whether the exchange is voluntary or not. Etymology The word "social" derives from the Latin word ''socii'' ("allies"). It is particularly derived from the Italian ''Socii'' states, historical allies of the Roman Republic (although they rebelled against Rome in the Social War of 91–87 BC). Social theorists In the view of Karl MarxMorrison, Ken. ''Marx, Durkheim, Weber. Formations of modern social thought'', human beings are intrinsically, necessarily and by definition social beings who, beyond being "gregarious creatures", cannot survive and meet their needs other than through social co-operation and association. Their social characteristics are therefore to a large extent an objectively given fact, stamped on them from birth and affirmed by socialization processes; and, according to Marx, in producing and reproducin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Sustainability Bonds Sustainability Bonds are fixed-income financial instruments ( bonds) where the proceeds will be exclusively used to finance or re-finance a combination of Green and Social Projects and which are aligned with the four core components of the International Capital Market Association (ICMA) Green Bonds Principles and Social Bonds principles. The main difference among green, social and sustainability bonds, lies in their sustainable categories for the allocation of proceeds, sustainability bonds needing to combine both social and green categories. The principles (ICMA) ICMA principles are currently the most commonly accepted framework for green, social and sustainability bonds’ issuance. They are coordinated by ICMA, which provides not only administrative support but also guidance for their governance process. The four core components of the principles are: # Use of proceeds: Identify the set of green and social sustainable categories or list of projects and assets to be financed ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]