This study aims to explore the performance of sustainable bonds and investigate whether there is evidence of a sustainability premium. The content of this study is compiled from a review and meta-synthesis of eligible journal articles to review the performance of sustainable issuances. It further investigates the role of sustainable bond issuances from various integral factors such as the current pricing and overall performance approach, policies, role, and contribution in achieving sustainability, investor sentiment, and its spread in developing countries. Sustainable bonds finance a combination of social and green bonds- therefore, the yields of both bonds are compared against conventional bonds. The findings show that sustainable bonds have gained popularity over the last decade due to the capital shift to green capacity. In 2020, sustainable bonds outperformed conventional bonds due to various factors and drivers. Empirical findings show that sustainable bond guidelines, social bond principles, and green bond principles play a vital role in promoting the sustainable bond market. The study confirms that sustainable bonds offer a slightly lower yield than traditional corporate bonds and command a slightly better price.
Keywords: sustainable bond, social bond, green bond
