A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called :
Detailed Explanation:
A Sustainability Bond is a bond whose proceeds are used to finance or refinance a combination of both environmental (green) and social projects.
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Green Bonds fund only environmental projects.
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Social Bonds fund only social projects.
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Sustainability Bonds combine both environmental and social objectives.
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Sovereign Bonds are government-issued debt instruments and are not necessarily linked to environmental or social projects.
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Therefore, Option C is the correct answer.
Why Other Options Are Wrong
| Option | What it means | Why not this? |
|---|---|---|
| Green Bond | Funds only environmental projects | Does not include social projects |
| Social Bond | Funds only social projects | Does not include environmental projects |
| Sustainability Bond | Funds both environmental and social projects | ✅ Correct Answer |
| Sovereign Bond | Debt issued by a government | Use of proceeds is not restricted to green/social projects |
Question 1 of 10 Bonds and Securities
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First question in this topic
Consider the following statements: Statement I: As regards returns from an investmen...