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Seychelles launches World’s First Sovereign Blue Bond
Why is it in the news ?
- The Republic of Seychelles has launched the world’s first sovereign blue bond.
- It is a pioneering financial instrument designed to support sustainable marine and fisheries projects.
More in the news
- The bond raised US$15 million from international investors, demonstrates the potential for countries to harness capital markets for financing the sustainable use of marine resources.
- The World Bank assisted in developing the blue bond.
- Proceeds from the bond will include:
1. Support for the expansion of marine protected areas.
2. Improved governance of priority fisheries.
3. The development of the Seychelles’ blue economy.
- Grants and loans will be provided through the Blue Grants Fund and Blue Investment Fund.
- The Funds will be managed by the Seychelles’ Conservation and Climate Adaptation Trust (SeyCCAT) and the Development Bank of Seychelles (DBS).
About Seychelles's Ecosystem
- Seychelles is an archipelagic nation consisting of 115 granite and coral islands.
- It has a land area of 455 km2 spread across an Exclusive Economic Zone of approximately 1.4 million km2.
- Seychelles is one of the world’s biodiversity hotspots.
- The country is balancing the need to both develop economically and protect its natural endowment.
- Marine resources are critical to the country’s economic growth.
- After tourism, the fisheries sector is the country’s most important industry, contributing significantly to annual GDP and employing 17% of the population.
- Fish products make up around 95% of the total value of domestic exports.
Source
World Bank.