Green financial bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions and industrial and commercial enterprises directly borrow from the society, promising to pay interest at a certain interest rate and repay the principal according to the agreed conditions. The essence of a bond is a certificate of debt, which has legal effect. There is a creditor-debtor relationship between bond buyers or investors and issuers. The bond issuer is the debtor and the investor is the creditor.
Financial bonds refer to bonds issued by banks and other financial institutions. Generally, the term of financial bonds is 3 to 5 years, and its interest rate is slightly higher than that of time deposits in the same period. Because the issuer of financial bonds is financial institutions, the credit rating is relatively high, and most of them are credit bonds.
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The new China financial bonds have developed by leaps and bounds, and the types are increasing. Important as follows:
(1) Securities company bonds; A security issued by a securities company according to law, with an agreement to repay the principal and interest within a certain period of time.
(2) Subordinated bonds of commercial banks. Subordinated bonds of commercial banks refer to bonds whose principal and interest are paid off after other liabilities of commercial banks and before equity capital of commercial banks.
(3) subordinated bonds of insurance companies.
(4) Short-term financing bonds of securities companies.
(5) Hybrid securities.
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