Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Karen Maghami is a portfolio manager for a mutual fund. Maghami, working with analyst Marcel Lynbrock, is researching two companies: Syvie Electric and EnileGEN. Located in the same country, both companies produce electricity from conventional and renewable sources. Maghami wants to integrate environmental, social, and governance (ESG) factors into the analysis of each company’s financial statements.Syvie Electric is a stock exchange- listed, state- owned enterprise (SOE). The sovereign government holds 58% of shares; remaining shares are publicly traded. EnileGEN is a public company owned primarily by institutional investors.Lynbrock starts with an analysis of corporate governance factors. Relevant information about the two companies is summarized in Exhibit 1.
|  | Sy vieElectric | En i leGEN |
| Ownership Information and Voting Policies |  |
| Percentage of shares owned by the largest shareholder | 58% | 9% |
| Straight voting | Yes | Yes |
| Board Information |  |
| Board structure | One-tier | Two-tier |
| CEO duality | No | Yes |
| Number of directors | 8 | 11 |
| Percentage of directors with experience in industry | 27% | 88% |
| Remuneration Policies |  |
| Clawback policy | No | Yes |
| Say-on-pay provision | Yes | No |


After reviewing the corporate governance information, Maghami and Lynbrock focus on factors related to environmental and social considerations. Lynbrock asks Maghami, “What resource would you recommend using to find a list of ESG factors material to the electricity generation sector?”Next, Maghami and Lynbrock discuss the effect of expected regulatory changes on stock and bond values for both companies. The government recently announced that it intends to authorize a new environmental regulation requiring that a minimum of 35% of electricity be produced from renewable sources. ?The exact timing of the new regulation is unknown, but EnileGEN already exceeds the minimum level by a significant margin. Maghami notes that the new regulation should give EnileGEN a competitive edge in the industry, and for scenario analysis purposes, she asks Lynbrock to assume that the regulation will take effect in two years. Lynbrock uses a discounted cash flow model to value EnileGEN stock under the assumption requested by Maghami.Lynbrock believes that the new regulation will make three of Syvie Electric’s coal-fired power stations no longer financially viable within 10 years following implementation. Maghami asks Lynbrock to estimate the potential effect on Syvie Electric’s balance sheet and the potential impact on the value of Syvie Electric bonds.Maghami reads in Syvie Electric’s most recent financial statements that the company plans to issue green bonds. Maghami asks Lynbrock to evaluate any possible valuation risks or opportunities associated with green bonds. Lynbrock tells Maghami the following:Statement 1: Green bonds offer higher protection for an investor because they typically are backed by the income derived from the environmental project they are used to fund.Statement 2: Issuing green bonds ensures a lower cost of capital because the green feature typically results in a tighter credit spread compared with conventional bonds.Statement 3: A unique risk related to green bonds is greenwashing, which is the risk that the bond’s proceeds are not actually used for a beneficial environmental or climate-related project.
Under the regulatory scenario requested by Maghami, Lynbrock should increase the credit spread of a Syvie Electric 10-year bond:
Option A:less than the spread of a 2-year bond.
Option B:by the same amount as the spread of a 2-year bond.
Option C:more than the spread of a 2-year bond.

Answer: C