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A bond whose proceeds are intended for eligible environmental and social projects under a defined framework.
The issuer explains eligible projects, how they are selected, how proceeds are tracked and what it will report. Funds may finance new projects or refinance qualifying existing spending. Investors still need to assess the issuer's repayment capacity and the framework's credibility. External review can provide useful scrutiny, but its scope and conclusions must be read rather than treated as a blanket guarantee.
Suppose an issuer raises US$50 million and allocates US$30 million to eligible renewable-energy projects and US$20 million to qualifying affordable housing. That hypothetical combines green and social uses. A later allocation report should show how the funds were actually applied. Even if the projects perform well, the issuer must still meet the bond's coupon and principal obligations.
JMMB plans regional sustainability bond as funding terms take shape