week 4 Green Bonds: Sovereigns and Corporates Issuance

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Questions and Answers

What is a criticism associated with the credit offered by multilateral development banks?

  • It reflects values-based judgements (correct)
  • It does not exist
  • It often leads to borrowers falling above the poverty line
  • It comes with no conditions

In the context of microcredit, what issue can arise when borrowers start below the poverty line?

  • Accusations of 'debt traps' (correct)
  • Access to more favorable loan terms
  • Higher credit limits
  • Easier repayment conditions

Why are use-of-proceeds instruments often criticized in sustainable investing?

  • They are too risky
  • They fund activities already occurring (correct)
  • They have no impact at all
  • They always generate additionality

What is a key differentiation being made within sustainable investing circles regarding impact?

<p>Between investor and investee impact (A)</p> Signup and view all the answers

What is a challenge associated with assessing the effectiveness of an investor's decision to purchase a dedicated asset?

<p>No differentiation between investor and investee impact (A)</p> Signup and view all the answers

Why might an investor who buys World Bank bonds not be able to claim the same effectiveness as the World Bank itself?

<p>The investor might not actively contribute to change (A)</p> Signup and view all the answers

What outcome can occur due to accusations of 'debt traps' in microcredit?

<p>Very bad outcomes like suicide by borrowers (A)</p> Signup and view all the answers

'Additionality' refers to:

<p>The extra value generated by an investment beyond what would've happened anyway (A)</p> Signup and view all the answers

'Investor and investee impact' differentiation highlights:

<p>The difference in impact creation between investors and investees (D)</p> Signup and view all the answers

What is one consequence of using 'use-of-proceeds' instruments without generating additionality?

<p>Failure to make real incremental change in the world (C)</p> Signup and view all the answers

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