A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called:

1. Green Bond
2. Social Bond
3. Sustainability Bond
4. Sovereign Bond

Explanation

Option (c) is correct

• A Sustainability Bond is a bond whose proceeds are used to finance or refinance a combination of green/environmental and social projects.
• Green Bond: only environmental projects
• Social Bond: only social projects
• Sovereign Bond: issued by a government, not necessarily linked to green/social use.

Answer: (c) Sustainability Bond; Difficulty Level: Medium