Issuance of green bonds grew to about $81 billion globally last year, influenced mainly by increasing climate change advocacy and green bond standards, according to a report by the Climate Bonds Initiative.
The World Bank plans to use the funds raised to support the financing of projects that advance its goals of eliminating extreme poverty and boosting inclusion, and that are aligned with the UN's Sustainable Development Goals or SDGs. Bond ROI will link directly to to the stock performance of companies included in the Solactive Sustainable Development Goals World Index.
Purpose-driven investors expect to get a return when certain social outcomes are reached, which in the case of a New Zealand bond is getting those who are mentally ill into stable jobs. The program, dubbed "social experiment" is being closely watched by those against the notion of privatizing state services and those who are proponents of innovative social welfare.
Hon. Morrison’s “fact-finding” housing affordability tour to London gave the treasurer ideas and motivation to innovate government funding and deliver better services. But advocates against the program say it may take a long time, if ever, before his new investment fund builds even one new affordable home.