GREEN BONDS: A GROWING PHENOMENA OR A PASSING FAD?

Abstract

Green bonds are fixed income securities whose proceeds are used for environmental friendly projects. They were first issued by World Bank and since have gained popularity especially during last five years. However, in the absence of a standard metrics to assess the ‘greenness’ or the impact of the money invested there appears to be scepticism about their long term survival in the global financial markets. An improvement in the risk return profile of these bonds with the help of policy makers could help the sustainability of these bond