Green Bonds

What is true about green bonds regulation?

• The regulation does not cover so-called social bonds, transition bonds or sustainability-linked bonds.

• The regulation cover social bonds, however the issuer of European green bonds won’t have to comply with minimum social safeguards.

• The bonds will be able to be used to finance education and training, but they do not have to relate to economic activities in line with the EU systematics (taxonomy).

• All answers are correct.

 

The green bonds standard will be open to all EU and non-EU issuers regardless of whether they are private or public and will cover all types of bonds, including covered bonds, asset-backed paper and project bonds (i.e. bonds where the return is linked to the asset they finance. 

• True

• False

What are some European green bonds can be utilized by companies pursuing sustainability, based on the EU systematics (taxonomy)?

• Funding long-term projects

• Transition towards systematics (taxonomy) alignment

• Transition activities

• All answers are correct.

Capital expenditure means any of the following assets or any combination thereof:

a. debt securities;

b. equity instruments.

• True

• False

European green bonds will be able to be used to finance long-term projects (lasting up to 10 years) that align business activities with EU systematics (taxonomy).

• True

• False

Prior to the issuance of the European green bond, issuers:

complete the European Green Bond fact sheet;

b) ensure that the completed information sheet of the European Green Bond is inspected during the pre-issue period by an external auditor and receives a favourable opinion from that auditor.

• complete the European Green Bond fact sheet.

• ensure that the completed information sheet of the European Green Bond is inspected during the pre-issue period by an external auditor and receives a favourable opinion from that auditor.

• complete the European Green Bond fact sheet and ensure that the completed information sheet of the European Green Bond is inspected during the pre-issue period by an external auditor and receives a favourable opinion from that auditor.

• complete the European Green Bond fact sheet or ensure that the completed information sheet of the European Green Bond is inspected during the pre-issue period by an external auditor and receives a favourable opinion from that auditor.

Issuers of European green bonds shall notify the publication of all documents to the competent national authority without undue delay.

• True

• False

Competent authorities shall exercise their functions and powers in the following way:

• directly.

• in cooperation with other authorities.

• by delegation to such authorities, while retaining responsibility for their exercise.

• All answers are correct.

The competent authorities shall publish on their official website the decision imposing an administrative penalty or any other administrative measure for breach of this Regulation as soon as it has been notified to the person to whom it applies.

• True

• False

Issuers shall request a post-issuance audit of the allocation report prepared after the full allocation of the revenues of the European Green Bonds by an internal auditor.

• True

• False