The Republic of Seychelles has launched the world’s first sovereign blue bond, a pioneering financial instrument designed to support sustainable marine and fisheries projects. The blue bond was launched at the ‘Our Ocean Conference’ being held in Bali, Indonesia from 29 to 30 October. The announcement was made by Vice-President Vincent Meriton, who is also responsible for the blue economy portfolio.

“We are honoured to be the first nation to pioneer such a novel financing instrument. The blue bond is part of an initiative that combines public and private investment to mobilise resources that will empower local communities and businesses. It will greatly assist Seychelles in our transition to sustainable fisheries and also safeguard our oceans while we sustainably develop our blue economy,” said Vice-President Meriton at the launch.

Seychelles is the first country to sell debt that targets ocean projects. The bond, which raised US $15 million from international investors, demonstrates the potential for countries to use capital markets for financing to support the sustainable use of marine resources.

HRH Prince of Wales’ Charities International Sustainability Unit and the World Bank were instrumental to the development of the blue bond.

Proceeds from the bond will include support for the expansion of marine protected areas, improved governance of priority fisheries and the development of the Seychelles’ blue economy. Grants and loans will be provided through the Blue Grants Fund and Blue Investment Fund, managed respectively by the Seychelles’ Conservation and Climate Adaptation Trust (SeyCCAT) and the Development Bank of Seychelles (DBS).

Almost 2000 delegates from around the world, including heads of state, financial institutions, young leaders, civil society organisations and representatives from the scientific community attended the ‘Our Ocean Conference’, themed ‘Our Ocean, Our Legacy’.