Capital Markets: Challenges and Developments

Seychelles issues world’s 1st ‘Blue Bond’


Note4students

Mains Paper 3: Economy | Mobilization of resources

From UPSC perspective, the following things are important:

Prelims level: Blue Bonds

Mains level: Viability of such Blue Bonds for India


Context

  • Seychelles has raised 15 million dollars by offering the world’s first ‘Blue Bond,’ raised from investors to finance ocean-based projects, to expand its marine protected areas and boost its fisheries sector.

World’s First Blue Bond

  1. The blue bond was officially issued on October 9, ahead of the first-ever global conference on the blue economy, which will be held at the end of November in Kenya.
  2. It is partially guaranteed by a USD 5 million guarantee from the World Bank (IBRD) and is further supported by a USD 5 million concessional loan from the Global Environment Facility (GEF) which will partially cover interest payments for the bond.
  3. Proceeds from the bond will be utilised for the expansion of marine protected areas, improved governance of priority fisheries and the development of the Seychelles’ blue economy.
  4. Grants will be provided through the Blue Grants Fund and will be managed by the Seychelles’ Conservation and Climate Adaptation Trust (SeyCCAT).

Benefits of the Bond

  1. The Blue Bond is a part of an initiative that combines public and private investment to mobilise resources for empowering local communities and businesses.
  2. It is aimed to assist Seychelles in achieving a transition to sustainable fisheries and safeguarding oceans.

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