1. DGB Group Knowledge Center
  2. Green bonds and sustainable financing

How do green bonds differ from traditional bonds regarding purpose?

Green bonds differ from traditional bonds primarily in their purpose and allocation of funds. While traditional bonds are general financial instruments used to raise capital for a wide range of purposes, green bonds—such as DGB Group’s green bonds—specifically focus on funding environmentally sustainable projects that restore nature. The funds raised through our green bonds are dedicated exclusively to initiatives with positive environmental impacts, such as reforestation/afforestation and ecosystem restoration projects. This targeted approach sets our green bonds apart from traditional bonds by aligning investments with sustainability objectives and contributing to the global effort to address biodiversity loss and promote ecological wellbeing. DGB’s green bonds fund our nature restoration initiatives, helping to boost biodiversity, create vital habitats, and restore the environment. They also support the many community benefits that our projects offer, including job creation, training, improved wellbeing, and economic opportunities.