Which among the following statements is are correct about green bonds 1 It is an equity instrument u...........

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Which among the following statements is/are correct about green bonds?

1. It is an equity instrument used to raise capital to fund green projects.

2. Private corporations cannot issue green bonds.

Select the correct answer using the code given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Both statements are incorrect.

Green bond is a debt instrument (and not equity instrument) which publicly states that capital is being raised to fund 'green' projects, that typically include those relating to renewable energy, emission reductions and so on.

Green bonds, a form of eco-friendly financing issued by public and private entities.? Green bonds are issued by multilateral agencies such as the World Bank, corporations, government agencies and municipalities.
India has embarked on an ambitious target of building 175 gigawatt of renewable energy capacity by 2022, from just over 30 gigawatt now. This requires a massive $200 billion in funding. This is likely to increase India's share in green bond market.

Hence option 4th is correct.