- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 17. Environmental, Social, and Governance (ESG) Considerations in Investment Analysis
- Subject 4. Evaluating ESG-Related Risks and Opportunities
CFA Practice Question
Which of the following statements is true regarding the use of proceeds from Green Bonds?
A. Proceeds can be used for any corporate purpose.
B. Proceeds must be used exclusively for green projects.
C. Proceeds are only used to pay off existing debt.
D. Proceeds can only be used for research and development.
Correct Answer: B
The primary objective of Green Bonds are funding environmentally sustainable projects. A key feature that distinguishes Green Bonds from traditional bonds is the use of proceeds.
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