The Holy Grail of Investments – The Green Bond

SAN JOSE, Costa Rica, Aug. 10, 2021 /PRNewswire/ — The world is "going green" fast and investors are increasingly looking to help…

SAN JOSE, Costa Rica, Aug. 10, 2021 /PRNewswire/ — The world is "going green" fast and investors are increasingly looking to help finance a better tomorrow by transitioning into a more sustainable environment. The market has fast evolved to include social and sustainable bonds with a specific emphasis on the especially attractive Green Bonds. In the past few years, the Green Bond market has experienced explosive growth. In recent years, banks have been looking for ways to achieve a more environmentally and socially responsible portfolio, facilitating the development of a thriving Green Bond market.

Last month, the issuance of the First Green Sustainable Tourism Bond was announced by Costa Rica Tourism Bonds pledging to work with and develop tourism projects that have strong ESG (environmental, sustainability and governance) initiatives and are a part of the Certification of Sustainable Tourism attracting foreign investors with the news gaining fast traction. Costa Rica Tourism Bonds is offering attractive returns by giving you the perfect way to vacation while building long-term value in a diversified portfolio committed to treating the world responsibly. They invite qualified investors to participate in the first round with a limited number of bonds available. For more detailed information click here.

Green Bonds enable capital-raising and investment for new and existing projects with environmental benefits. The demand for such investments comes from a variety of sources. Some investment funds are dedicated to investing using ESG principles. For them, Green Bonds are an obvious choice. A majority of investors who buy these bonds tend to hold them for a long period of time known as buy-and-hold investors, and that means there are fewer Green Bonds available to buy on the open market. 

There are a number of reasons that clients may be interested in adding Green Bonds to their portfolios. The primary incremental benefit that green bonds provide is as an "impact investment"—investors in these bonds know that they are directly funding projects that address environmental challenges.

In November 2008, the World Bank issued its first Green Bond in response to a request from a group of Swedish pension funds seeking to invest in projects that address climate change. Labeled the world’s first green bond, it became a blueprint for today’s Green Bond market, providing options for investors to support climate solutions with their investments without sacrificing financial returns.

The Costa Rican Stock Exchange was the first in Central America to adhere to the Sustainable Stock Exchange initiative. For this reason, it was the first in the region to make a commitment to promote support for sustainable development from the capital market.

Goldman Sachs has proven to be a pioneer in the deployment of environmental impact bonds leveraging private investments to support high-impact green opportunities including investing in the first-ever Environmental Impact Bond for DC Water totaling $300 million.

The future for Green Bonds appears bright. At an international level, Green Bonds are in high demand. For investors focused on sustainability, Green Bonds are quickly becoming the Holy Grail of investments representing a powerful opportunity to pursue positive environmental change while also earning attractive fixed income returns. Our environmentally conscious world is finally seeing the Bond it deserves.

Jennifer Samaria
+1 800-599-0330


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SOURCE Costa Rica Tourism Bonds