{"id":263,"date":"2021-06-18T17:30:25","date_gmt":"2021-06-18T22:30:25","guid":{"rendered":"https:\/\/juanjosegutierrezmayorga.com\/?p=263"},"modified":"2021-09-27T15:46:59","modified_gmt":"2021-09-27T20:46:59","slug":"trabajo-del-bono-verde","status":"publish","type":"post","link":"https:\/\/juanjosegutierrezmayorga.com\/en\/trabajo-del-bono-verde\/","title":{"rendered":"Green bond work"},"content":{"rendered":"

Stakeholders around the world are concerned about the irreversible damage being done to the earth’s ecosystem, which is why the green or sustainable bond has been created. There is a common belief among people that the natural habitat of planet Earth has been irreversibly damaged. It is true that climate change affects us all. It is also true that very soon the earth will run out of finite natural resources such as oil and other fossil fuels. Therefore, it is imperative that companies start investing in environmentally friendly projects.<\/p>\n

However, entrepreneurs like the Bosch Gutierrez family<\/a> and many others around the world are concerned about the potential benefits of investing in such green projects. Therefore, the concept of green bonds has been introduced to help organizations manage their move toward sustainability without putting undue pressure on their finances<\/b> .\u00a0After all, markets tend to work toward what is profitable rather than what is environmentally friendly.<\/p>\n

There is still considerable ambiguity about the full life cycle of a green bond.\u00a0In this article, we will explain in great detail the concept of green bonds and how they work.<\/p>\n

What is a green bond?<\/h2>\n

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\nA green bond is primarily a debt instrument.\u00a0Financially it is not very different from other bonds in the sense that it is a fixed income instrument and pays a coupon.\u00a0However, the bonds are unique in that they are used exclusively to finance green projects.\u00a0This could be a new green project that is being built from scratch or an existing project that is being converted to more environmentally friendly standards.<\/p>\n

The European Investment Bank pioneered the issuance of green bonds in 2007. Initially, the size of the issue was very small.\u00a0However, over a period of time, more investors and institutions have shown interest in this financing instrument.\u00a0As a result, there is now a thriving primary and secondary market for these bonds.<\/p>\n

Advantages of green bonds<\/h2>\n

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\nInvestors around the world are lining up to buy green bonds.\u00a0This can be seen in the fact that almost all green bond issues to date have been oversubscribed.<\/p>\n

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