Explanation

Sustainability Bonds are debt instruments whose proceeds are used for a combination of green/environmental and social projects.

Green Bonds are meant exclusively for environmental and climate-related projects, such as renewable energy, pollution control and biodiversity conservation.

Social Bonds finance projects aimed at achieving positive social outcomes, such as affordable housing, essential services and basic infrastructure.

Sovereign Bonds are issued by national governments to finance general expenditure or manage public debt. The term describes the issuer, not the purpose for which the funds are used.

Therefore, the instrument financing both environmental and social projects is the Sustainability Bond.