Correct option is D
Correct Option: D. Green Bonds are fixed interest loan is short date maturities
Explanation:
Green bonds are debt instruments used to raise funds exclusively for climate and environmental projects. They have the same financial structure as regular bonds but are earmarked for green projects.
Information Booster:
Statement 4 is NOT true because:
1. Green bonds can have long-term maturities (e.g., 5, 10, 20 years), just like conventional bonds.
2. They are not specifically short-term; many are medium to long-term.
3. The phrase "short date maturities" is incorrect as a defining feature.
Additional Knowledge:
1. Option A. True – Green bond proceeds are exclusively for climate-friendly or environmentally sustainable projects.
2. Option B. True – The first green bonds were issued in 2007 by the European Investment Bank (World Bank also issued in 2008).
3. Option C. True – Green bonds are considered a financial innovation promoting sustainable finance.
