Seychelles Blue Bond
From Wikipedia, the free encyclopedia
The Seychelles blue bond was the first sovereign bond issued specifically to finance marine conservation and sustainable development.[1] It was issued by the government of Seychelles on 29 October 2018, and raised US$15 million. The proceeds from the bond were used to support the expansion of marine protected areas, the improving fisheries management, promotion of sustainable tourism and the development of climate-resilient coastal communities[2]
The Seychelles is a small island country in the Indian Ocean. It is a popular tourist destination with an economy that is heavily dependent on the ocean. In Seychelles, the fisheries sector employs 17% of the population and contributes 20% to GDP[3]
The Seychelles is also vulnerable to climate change as rising sea levels and ocean acidification continues to threaten costal communities and marine ecosystems.[4]
Bond
The Seychelles blue bond is a 10-year bond with a coupon of 6.5%.[5] It was issued through a private placement to three impact investors: Calvert Impact Capital, Nuveen and Prudential.[6]
The bond was initiated with a US$5million guarantee from the World Bank. In addition, the World Bank provided a US$5million concessional loan to help cover the interest payments on the bond[2]
Proceeds
The proceeds from the bond were used to support a number of projects including
- The expansion of marine protected areas through a committed effort by the government of Seychelles to increase the protected Exclusive economic zone to 30% by 2020.[7]
- The improvement of fisheries management by funding the development of new fisheries management tools[8]
- The development of new infrastructure to improve climate-resilience and the implementation of climate adaptation measures.
