Climate action is high on everyone’s agenda, and as such, there is a lot of focus on green bonds. The COVID-19 pandemic has also shone a light on social bonds – securities designed to fund measures aimed at addressing social issues including the impact of the coronavirus.
Sustainability bonds, those that include both green and social use of proceeds, are also in vogue. There is, however, another member of this increasingly diverse club – sustainability-linked bonds. What are they, and why is their popularity growing?
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