Seychelles launches World’s First Sovereign Blue Bond


What is Important?
UPSC perspective:
Prelims:Highlights
Mains:Highlights & Significance


Why in News?

Seychelles government announced the launch of the world's first sovereign blue bond, which will be used to help finance the island nation's transition to sustainable fisheries and the protection of marine areas.

Highlights:

*The Republic of Seychelles has launched the world’s first sovereign blue bond assisted by the World Bank.
*It is a pioneering financial instrument designed to support sustainable marine and fisheries projects.
*The Blue Bond is a part of an initiative that combines public and private investment to mobilise resources for empowering local communities and businesses.
*The Seychelles blue bond 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.
*A World Bank team comprising experts from its Treasury, Legal, Environmental and Finance groups worked with investors in structuring the blue bond.
*The fisheries sector is the country’s most important industry, contributing significantly to annual GDP and employing 17% of the population.

About Seychelles:

*The Seychelles is an archipelago of 115 islands in the Indian Ocean, off East Africa. 
*It's home to numerous beaches, coral reefs and nature reserves, as well as rare animals such as giant Aldabra tortoises. 
*Mahé, a hub for visiting the other islands, is home to capital Victoria. 
*It also has the mountain rainforests of Morne Seychellois National Park and beaches, including Beau Vallon and Anse Takamaka.




Seychelles launches World’s First Sovereign Blue Bond Seychelles launches World’s First Sovereign Blue Bond Reviewed by The Hindu Current Affairs on October 31, 2018 Rating: 5

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