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Q57 (IAS/2026) Economy › Money, Banking & Inflation Official Key

A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called:

Result
Your answer: —  ·  Correct: C

Explanation

A Sustainability Bond is a type of debt instrument where the proceeds are exclusively applied to finance or re-finance a combination of both environmental (green) and social projects. They align with the Sustainability Bond Guidelines, which integrate the core components of both Green Bond Principles and Social Bond Principles.

  • Green Bonds are used exclusively to finance projects that have positive environmental and climate benefits.
  • Social Bonds are used exclusively to finance projects that aim to achieve positive social outcomes.
  • Sovereign Bonds are debt securities issued by a national government to finance its spending, regardless of whether the projects are environmental, social, or general administrative.

    • Therefore, a bond combining both green and social objectives is known as a Sustainability Bond.

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    SIMILAR QUESTIONS

    CISF · 2023 · Q59 Relevance score: 0.23

    Consider the following statements related to 'Sovereign Green Bonds':
    1. Union Budget 2021-22 announced the issue of these bonds
    2. The Government of India has approved a Sovereign Green Bonds Framework
    3. These bonds are meant to be issued for mobilizing resources for green projects
    4. These bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate suitable projects
    How many of the above statements are correct?

    CDS-II · 2024 · Q78 Relevance score: -5.00

    Long-Term Low Emissions Development Strategy envisions: 1. A transition from fossil fuels in a just, smooth, sustainable manner. 2. Increased use of bio-fuels. 3. Climate resistant urban development. 4. Financing of sustainable development through Green Bonds. Select the answer using the code given below:

    CAPF · 2025 · Q23 Relevance score: -5.57

    The Union Budget for which of the following years announced the issue of Sovereign Green Bonds to reduce the carbon intensity of the economy?

    CDS-I · 2021 · Q61 Relevance score: -6.75

    The asset or assets that a borrower pledges in order to guarantee repayment of a loan is called as