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Table 2 Typology of Green Bonds

From: Green bonds issuance: insights in low- and middle-income countries

Green Bond Type Attribute Debt recourse
Use-of-Proceeds Bond Proceeds raised by bond sale are earmarked for green projects in the issuer’s portfolio. Recourse to the issuer. Entire balance sheet
Use-of-Proceeds Revenue Bond or ABS Proceeds raised by bond sale are earmarked for or refinances green projects Recourse is limited to an issuer’s pledged revenue streams.
Project Bond Proceeds raised by bond sale are earmarked for a specific project. Recourse is restrained to the project’s assets and balance sheet
Securitisation (ABS) Bond Proceeds raised by bond sale are pooled are earmarked for green projects Recourse is to a group of projects that have been grouped together
Covered Bond Proceeds raised by bond sale are earmarked for eligible projects included in the covered pool Recourse either to the issuing entity or to an affiliated group to which the issuing entity belongs and to a pool of collateral that is separate from the issuer’s other assets
Loan Proceeds raised by bond sale are earmarked for eligible projects or secured on eligible assets Recourse is full to the borrower in the case of unsecured loans.
Recourse to the collateral in the case of secured loans
  1. Source: (Climate Bonds Initiative, 2018), (Banga, 2019), (Berensmann et al., 2018)