What is Bond

With increasing concern in environment and sustainability and rising costs, the need for alternative financing mechanisms has arisen. Especially in developing countries, where financial resources are scarce, it is necessary to come up with new ways of financing options to cover for the upfront investment needs of green projects. Recently green bonds are commonly used to finance green projects. Like conventional bonds, green bonds are fixed income securities, however proceeds of green bonds can only be used in financing or re-financing new or existing green projects that have environmental benefits. In this chapter the author details the concept and types of green bonds, figures on how developed and integrated green bond market is, green bond principles and measurement of objectives, regulatory bodies, investment advantages and risks, investment alternatives, real-life examples as well as suggested greenium (green premium) and concept for investors.