StanChart Facilitates First World Bank ‘Blue Bond’

Standard Chartered Plc in partnership with the World Bank, has launched the world’s first sovereign blue bond for the Republic of Seychelles.

The bond raised US$15 million from international investors, which would help expand and protect marine areas, improve governance of priority fisheries and develop the Seychelles’ blue economy.

The World Bank assisted in developing the blue bond and reaching out to the three investors: Calvert Impact Capital, Nuveen, and Prudential. Standard Chartered acted as placement agent for the bond.

Speaking about the landmark placement, the Chief Executive, Corporate, Commercial and Institutional Banking at Standard Chartered, Simon Cooper, was quoted in a statement to have said: “The world’s first sovereign blue bond is a landmark transaction and one in which Standard Chartered is proud to have played a role, in partnership with the World Bank and the Republic of Seychelles.

“Finding innovative ways to mobilise capital to tackle development issues

Also, the Global Head of Sustainable Finance and Global Head of Public Sector & Development

Organisations, Standard Chartered, Daniel Hanna said: “The Seychelles blue bond will help protect the health of our oceans while developing a blue economy and serves as a powerful example for other countries, highlighting that finance can play a role as an important force for good.”

The Seychelles blue bond is partially guaranteed by a US$5 million guarantee from the World Bank and further supported by a US$5 million concessional loan from the Global Environment Facility, which would partially cover interest payments for the bond.

Proceeds from the bond would also contribute to the World Bank’s South West Indian Ocean Fisheries Governance and Shared Growth Program, which supports countries in the region to sustainably manage their fisheries resources and increase economic benefits from their fisheries sectors.

The launch came soon after the Group created a new Sustainable Finance team to focus on emerging market sustainable financing and to lead all its business activities in the area. This also followed recent announcements to cease financing new coal fired power plants, explore its role in promoting greater disclosure on emissions and set new science-based emissions targets.