What are Sustainability Bonds designed to support?

Prepare for the CPFO Debt Management Exam. Study effectively with flashcards and multiple choice questions, complete with hints and detailed explanations. Get exam-ready!

Sustainability Bonds are specifically structured to finance projects that deliver both environmental and social benefits. This dual focus enhances their appeal to investors who are interested in making a positive impact while also seeking a financial return. By combining these elements, Sustainability Bonds support initiatives such as clean energy projects, affordable housing, education programs, and healthcare improvements. Investors are increasingly looking for opportunities that align with their values regarding sustainability, which makes these bonds an effective tool for funding projects that contribute to social equity and environmental stewardship.

The other options do not capture this comprehensive purpose. Focusing solely on environmental projects or just social initiatives limits the scope of the bond's impact. Standard investment portfolio options do not provide the same targeted approach to positive change that Sustainability Bonds aim to achieve.

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