The emphasis in sustainability has expanded to corporate financing! We have seen current trends in issuing green bonds to fund environmentally friendly initiatives and sustainability bonds for broader sustainability purposes. One of the recent articles on WSJ elaborated on these trends. Read
Chap 14 Companies Include Green Bonds in Larger Debt Offerings – WSJ.pdf
and answer the following questions:
• In your words, describe the purpose or purposes of a green bond issuance.
• Why do you think companies combine green bond issuances within larger bond offerings?
• According to the article, what is the difference between a green bond issuance and a sustainability bond issuance?
• According to the company’s estimate as described in this article, what interest rate would Micron Technology Inc. have paid on its bond offering without specifying it as a green bond?
