The issuer publishes a framework, usually obtains a second-party opinion and reports regularly on the use of proceeds and impact. Independent assurance that funds went to the committed projects reduces greenwashing risk.
Source: SPK Yeşil Borçlanma Aracı, Sürdürülebilir Borçlanma Aracı Rehberi; ICMA ilkeleri
Related terms
Green financeInstruments such as green bonds, green loans and sustainability-linked loans used to finance projects with environmental benefits.Use of proceeds reportA report showing whether the funds raised in an IPO or capital increase have been used for the purposes stated in the prospectus.GreenwashingMisleading claims and communication that present a company's products, activities or financial instruments as more environmentally sustainable than they really are.Asset-backed securityDebt instruments created by transferring cash-generating assets such as loans, leases or trade receivables to a fund or special purpose vehicle and repaid from those assets' cash flows.Authorised capital systemA system under which the board may increase capital up to a ceiling set in the articles of association without a general assembly resolution.Bonus issueIssuing shares to shareholders by adding a company's internal resources (reserves, retained earnings, capital adjustment differences) to its capital.
Last updated: November 8, 2026 · This definition is for general information only.