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GFOA White Paper: Green Bonds

GFOA White Paper: Green Bonds

Green bond issuance generated significant attention beginning 2014 and has garnered more attention as the market expanded in subsequent years. However, this emerging market faces inconsistent expectations among potential green bond investors, and it is not yet evident that green bond designation results in a direct financial benefit to issuers. As the market grows, issuers should expect standards to continue to develop. As with any financing tool, it is important that issuers understand costs, risks and benefits before entering into a transaction. Note that all existing debt management best practices continue to apply to bonds issued for green projects. This document is intended to inform GFOA members of important considerations related to the evolving market for green bonds.