Real estate finance is going green, with the use of new bonds linked to the sustainability of a project.
A number of developers around the world starting to look towards green bonds – fixed income instruments which raise capital for projects with environmental benefits. Funds can be used to finance green projects such as renewable energy, energy efficiency, clean transportation and of course green buildings. While a total of US$155.5 billion of green bonds were issued in 2017, the amount is tiny in the context of the global fixed income market, where US$6 trillion of bonds were issued last year.
Source: The Investor