A Cognizance of Green Bond Features Preferential to Renewable Energy Project Financing in Ghana

Issuance of green bonds (GBs) is valuable for developing countries because it provides a market deepening mechanism, which enables greater liquidity for investments in renewable energy (RE) sector. This article is premised on the outlook for the first GB in Ghana. The study investigates the features of GBs, which investors prioritize as preferential for RE financing (REF). Employing the literature, twelve beneficial features of GBs were identified and formed the based for a questionnaire, which was handed to experts in financial institutions to complete. Data were analysed and ranked with the relative importance index and other statistical tests. The findings illustrated that low-interest rates, similar payback period, economic convenience and transparency issuance are among the top preferential features for feasible GB rollouts in Ghana. Findings implied that akin to other worldwide cases for REF, GBs represent a degree of flexibility, which stems from the homogeneity in their respective features. The study illustrates the specific priorities, which must be considered by potential investors. Resultantly, enabling GBs issuers to develop GB packages that suit the needs of the investment community and ultimately contribute to RE targets’ achievement.