Exploring market stability of green bonds in Fiji: Investor perspectives

Background: Despite the studies on government bond in Fiji, this is the first study providing a unique exploration of Fiji's green bonds, focusing exclusively on investors' viewpoints. It contributed novel insights into the motivations and decision-making processes of green bond investors, enriching the discourse on sustainable finance, especially in developing nations like Fiji. Objectives-The primary aim of this study was to explore the stability of green bond markets in Fiji comparison to term deposits offered by listed financial institutions. The specific objectives included evaluating the status of Fiji's green bonds and government debts, term deposits in listed financial institutions, exploring the prospects of green bonds, and providing recommendations for market share expansion. Methodology- A desk-based research approach was employed, combining descriptive analysis and future value simulation analysis (Dulock, 1993) (6). Data was sourced from empirical studies, websites, and annual reports, and analyzed using software such as SPSS and Microsoft Excel, with results presented through charts and graphs. Results - Indicated that domestic investors exhibited reluctance towards trading green bonds. To broaden the capital market, the research underscored the importance of smaller bond denominations, facilitating bond trading through domestic financial institutions, conducting extensive marketing campaigns, and enhancing financial literacy. The study also introduced innovative insights into potential investors' perspectives. Conclusion- The findings could assist stakeholders in devising effective strategies to attract potential green bond investors, while theoretically, the research made a valuable empirical contribution to the existing literature on green bonds.