Green bond growth opens up investor opportunities

What is a green bond?

A fixed income investment that is used to raise money for financing renewable energy infrastructure

A bond issued by a company that works in the environmental sector

A bond issued by a company or government that is committed to improving the environment

A fixed income investment that is used to raise money for projects/activities that have a positive environmental/climate benefit

Which of these industries does not typically use green bonds for financing?

Transport industry

Infrastructure industry

Energy industry

Automotive businesses

Which of these is not an advantage of a green bond?

Investors in green bonds tend to be orientated towards the longer term

It is a source of funding that allows companies to meet their ESG requirements without having to take on additional debt

It is a new source of funding

It is increasing the overall number of bonds available

Which of these is a common concern about green bonds?

They are not well regulated

They are not well understood by retail investors

The definition of green has not yet been properly defined

They do not have a good interest rate

What type of investors do green bonds commonly attract?

Investors who want to ensure companies are meeting their ESG requirements

Investors with a longer-term mindset

Investors who want to ensure environmentally friendly investments

Investors who want a lower, but more secure rate of returns

Which of these is a drawback for the issuer of the bond?

The issuer is subject to more regulatory scrutiny when issuing a green bond

The issuer is selling the bond to a restricted market

The issuer bears extra costs to issue green bonds

Regular investors may not be interested in a green bond

Why might there be more demand for green bonds now?

Because increasing numbers of investors believe only environmentally sustainable companies will do well in the long term

Because regulations on what companies can do to the environment are tightening

Because there is a better rate of interest on green bonds now than there has been in the past

Because of public pressure on companies to clean up their act

Which of these might be a likely outcome of tighter regulation of green bonds?

Fewer companies will issue green bonds

The regulatory bodies for green bonds will struggle to monitor their issuance

Fewer investors will be interested in green bonds

The types of projects green bonds can be used for may narrow

Why might green bonds possibly have more favourable interest?

Because investment companies do not charge fees to trade green bonds

Because action like the Paris Agreement is encouraging governments to favour green investments

Because they are relatively new they tend to be issued by successful companies

Because they are less liquid (and therefore held for a longer period)

Why might China be one of the biggest investors in green bonds?

Because China has a higher number of industrial companies

Because they are trying to mitigate the effects of an industrial boom under climate change agreements

Because it increases the types of investment available to investors in Chinese companies

Because it is the biggest market

Green bond growth opens up investor opportunities

What is a green bond?

Which of these industries does not typically use green bonds for financing?

Which of these is not an advantage of a green bond?

Which of these is a common concern about green bonds?

What type of investors do green bonds commonly attract?

Which of these is a drawback for the issuer of the bond?

Why might there be more demand for green bonds now?

Which of these might be a likely outcome of tighter regulation of green bonds?

Why might green bonds possibly have more favourable interest?

Why might China be one of the biggest investors in green bonds?

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Green bond growth opens up investor opportunities

What is a green bond?

Which of these industries does not typically use green bonds for financing?

Which of these is not an advantage of a green bond?

Which of these is a common concern about green bonds?

What type of investors do green bonds commonly attract?

Which of these is a drawback for the issuer of the bond?

Why might there be more demand for green bonds now?

Which of these might be a likely outcome of tighter regulation of green bonds?

Why might green bonds possibly have more favourable interest?

Why might China be one of the biggest investors in green bonds?

You scored

0

out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

Related topics

Our sites

Useful links

Using this site

Contact us

Planned system updates