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The concept of ESG products has only recently emerged in our practice. They are financial instruments of a sustainable economy. They are divided into many types. In Russia there are now green, social, sustainable and adaptation bonds and loans.
There are also climate bonds and even so-called gender bonds, which are issued to support women’s entrepreneurship. There are also so-called blue bonds that support ocean ecosystems.
When issuing green bonds, the issuer is obliged to use the proceeds of the issue for environmental impact reduction projects.
As for the complexity of issuing such bonds, the issuer must be more open, i.e. transparent towards investors, must show them the projects for which funds are to be raised and must report more thoroughly on their implementation.
In general, issuing green securities is slightly more expensive than issuing conventional bonds. It is also important to verify them, i.e. to obtain an independent opinion from an accredited verifier.
Cover photo: barmalini / iStock
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