Ivano Boesky is part of the executive team of a large New Zealand producer of consumer goods sold in New Zealand, Australia, and to a smaller extent internationally to other countries.

One product that the company recently released was advertised or promoted as being made of recycled material. The product was selling well in the market, but some consumers were able to identify that some material in the product was not green. These people then started to post on the companys social media accounts comments about the product not being green. This then led to further customer scrutiny of other products within the companys line as not being green.

The company received vocal negative feedback as a result and was forced to remove these product lines.

The executive team thought it might be worthwhile to raise funds using a green bond issue. The idea was that this could then be used to promote the company as being sustainable and green.

1. Do you believe that the issuance of green bonds is a good strategy to counteract the negative media in regards to their green products not being green? Explain. (4 marks)
2. Would you suggest that they raise the money using green bonds domestically in Australia or in Frankfurt? Explain. (4 marks)