Where is the money going to come from to pay off the matured bonds in ten years?
Low-interest loans will be paid back over time. A low-interest loan of $25,000 will be paid back over ten years at 5.25%. The total amount paid back will be $41,702. $25,000 worth of Green Bonds at 2.9 percent will be worth $33,273 after their ten-year maturity. The difference between $41,702 – the amount paid back by the recipient of a Green Bond loan – and the value of the Green Bonds ($33,273) is $8,429. The $8,429 goes back into the Green Bond capital pool and is available for another loan. And the $33,273 goes back to the person who bought the Green Bonds in the first place. No-interest loans will also be paid back over ten years and since no interest was charged, a minimal share of the business/product will be held in the Green Bond capital pool to offset the value of matured Green Bonds. Grants will not be paid back, per se, but a share of the business/product revenue will be held in the Green Bond capital pool to offset the value of matured Green Bonds capital that was used to
