Investor incentives for public sector green, social, sustainability and sustainability‑linked bonds

This report aims to contribute to an improved understanding of how investors view public sector green, social, sustainability and sustainability-linked (GSSS) bonds, and to strengthen development actors’ approach to supporting issuances in developing countries. It draws from the insights shared by respondents to the ‘OECD-LuxSE survey on investor incentives for public sector GSSS bonds’ and subsequent consultations with investors and other market players. It explores the factors influencing investor interest and risk appetite for GSSS bonds, and expectations on future market developments. Considering these findings, it provides policy considerations and concrete actions to help donors, issuing governments in developing countries and other market players increase the attractiveness of public sector GSSS bond issuances and investments in developing countries for investors.