Which of the following statements is/are correct with reference to the green bonds?

Answer & Explanation

Option: A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.

Explanation:

The cost of issuing green bonds has generally remained higher than other bonds in India, largely due to asymmetric information. The average coupon rate for green bonds issued since 2015 with maturities between 5 to 10 years have generally remained higher than the corporate and government bonds with similar tenure. A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.