BLUE BONDS
Blue bonds are an innovative financial instrument in which the funds raised are designated exclusively for projects associated with the oceans. Blue bonds use their proceeds for marine projects, such as promoting biodiversity and supporting economies reliant upon healthy and sustainable fishers. Africa has a coastline with over 47,000 km and 38 coastal and island states. The fisheries and aquaculture sector employs 12.3 million people to generate $24 billion, according to the Food and Agriculture Organization. This sector is crucial in order to provide food and nutrition to millions of people in Africa. Innovative ocean financing tools can be used to invest in sectors of the blue economy such as fisheries to enhance food security, protect livelihoods and help drive sustainable ecosystems.
Seychelles First Sovereign Blue Bond
Seychelles is an archipelagic nation consisting of 115 granite and coral islands. As one of the world’s biodiversity hotspots, Seychelles is balancing the need to both develop economically and protect its natural endowment. 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. The Republic of Seychelles has launched the world’s first sovereign blue bond, a financial instrument created in order to support sustainable marine and fisheries projects. The proceeds from the bond, that has raised a total of $15 million from foreign investors, will include support for the expansion of marine protected areas, improved governance of priority fisheries and the development of the Seychelles’ blue economy.
Works Cited
Ahmed, Maram. Blue Bonds: What They Are, and How They Can Help the Oceans. 6 June 2019.
“Blue Bonds: The Next Wave of Sustainable Bonds.” Morgan Stanley, Morgan Stanley Research Department, 18 Sept. 2019.
“Blue Bonds: The Next Wave of Sustainable Bonds.” Morgan Stanley, Morgan Stanley Research Department, 18 Sept. 2019.
de Graaf, G. & Garibaldi, L. 2014.The value of African fisheries. FAO Fisheries and Aquaculture Circular. No. 1093. Rome, FAO. 76 pp.
“Seychelles Launches World's First Sovereign Blue Bond.” World Bank, 29 Oct. 2018.