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