World Bank2015-10-212015-10-212015https://hdl.handle.net/10986/22791The explosive growth of green bonds in the capital markets is increasingly attracting attention from investors. This surge in interest has created a demand for accessible information on the green bond market. This primer was created in response to this demand and covers the principles of this relatively new financial instrument. The following intends to serve as a guide for those interested in better understanding the nature of green bonds. The content will aim to distinguish green bonds from other traditional financial instruments. It will also provide insight into the potential of green bonds to mobilize new sources of climate finance. This paper includes the following highlights: understanding bonds (chapter one); understanding green bonds (chapter two); and benefits and potential.en-USCC BY 3.0 IGOUNDERWRITERSPLEDGESBOND INVESTMENTSCAPITAL MARKETSBORROWERINTERNATIONAL CAPITALSTOCKMARKET PLAYERSSUPERVISORY AUTHORITYINTERESTINSTITUTIONAL INVESTORSBOND RETURNSINVESTOR PARTICIPATIONGUARANTEESINTEREST RATEEXCHANGESTOCK MARKETCAPITAL BASEHEDGE FUNDSTREASURIESISSUANCESLIQUIDITYDEVELOPING COUNTRIESEQUITY MARKETDEBTORREVENUESPORTFOLIOMARKET SIZEBONDSDOMESTIC DEBT MARKETSDEBT SECURITYLOANCREDITWORTHINESSGLOBAL CAPITAL MARKETSPRIVATE PROPERTYASSET MANAGEMENTSTOCK MARKET CAPITALIZATIONDEBT ISSUANCEINTERNATIONAL BANKCREDITORSPENSIONCASH FLOWSINSTRUMENTSBOND ISSUERSCREDIBILITYMARKET PARTICIPANTSINFORMATION DISCLOSUREMATURITYSPECTRUM OF RISKBOND ISSUANCESINTERNATIONAL FINANCEINSTITUTIONAL INVESTORMORTGAGESBOND INVESTORSDERIVATIVESCREDIT RATINGSEXCHANGE COMMISSIONCURRENCYASSET PORTFOLIOSGOVERNMENT REGULATIONSSECURITIES MARKETINTERNATIONAL BOND MARKETSPORTFOLIOSFOREIGN CURRENCIESBOND ISSUANCETRADINGGLOBAL CAPITALOPTIONSINTERNATIONAL BONDFINANCIAL INSTITUTIONSMARKETSDEBTCAPITAL MARKETRETURNBOND ISSUESETTLEMENTPUBLIC OFFERINGDOMESTIC DEBTLOANSINVESTMENT OPPORTUNITIESPRIVATE FINANCELOCAL FINANCIAL MARKETSPRIVATE CAPITALINVESTMENT STRATEGYEQUITIESPENSION FUNDSDUE DILIGENCECLEARING CORPORATIONFINANCEBROKERMARKET PRICETRANSACTIONSINVESTMENT BANKSEQUITYTRANSACTIONSECURITIES MARKETSINVESTORSUNDERWRITERBOND MARKETSGOODGLOBAL BONDPRIVATE SECTOR BANKFIXED INTERESTTRANSPARENCYSOVEREIGN GUARANTEEPRIVATE PLACEMENTMARKET CAPITALIZATIONMARKET CONDITIONSCONSUMER LOANSBOND PORTFOLIOFUTUREINTERNATIONAL CAPITAL MARKETRETURNSBANK CREDITSEXCHANGESINVESTMENT BANKINCOME SECURITIESFINANCIAL INSTRUMENTSBOND MARKETFINANCIAL INSTRUMENTCONTRACTCAPITALIZATIONINFRASTRUCTURE BONDSDISBURSEMENTSPROPERTYISSUANCELOAN PORTFOLIOBALANCE SHEETMARKETCREDIT RATINGEQUITY INVESTMENTSECURITIESTREASURYCDINSURANCECURRENCIESDEBT MARKETSECONOMIC DEVELOPMENTGOVERNMENT BONDSINVESTORCORPORATE BONDSEQUITY INDEXSECURITYSTOCKSDEBT INSTRUMENTSSTOCK EXCHANGEINVESTMENTBONDINVESTMENT PORTFOLIOINTERNATIONAL INVESTORCOMMERCIAL BANKSSHARECORPORATE BONDPOVERTYCREDIT QUALITYFINANCIAL INFORMATIONREVENUE BONDSFINANCIAL MARKETSDEBT OBLIGATIONSCOUPONREVENUEFINANCIAL STRUCTUREINVESTMENTSLENDINGDEBT INSTRUMENTCHECKCREDIT AGENCYBANK BONDSSWAPSSHAREHOLDERPENSION FUNDMATURITIESINSURANCE COMPANIESINSTRUMENTGLOBAL BANKINGOUTSTANDING LOANSLIABILITIESFIXED COUPONHEDGECREDIT HISTORYSECURITIES INDUSTRYINTERNATIONAL SETTLEMENTSGUARANTEEDEVELOPMENT BANKASSET MANAGERSINVESTINGWorking PaperWorld Bankhttps://doi.org/10.1596/22791