IDB Invest has issued a A$50 million (€32.3 million) 20-year blue bond, maturing in November 2042, to finance private sector projects that help promote the sustainable use of water resources.
Specifically, the purpose of this bond is to help achieve UN Sustainable Development Goal 6, Clean Water and Sanitation, by promoting better livelihoods and jobs, as well as ocean conservation.
Blue bonds can provide financing for numerous businesses that have a positive impact, including businesses located near bodies of water, land-based businesses that support ocean ecosystem health, and water and sanitation projects.
Blue bonds are especially relevant for Latin America and the Caribbean, with much of its population living in coastal areas. The Caribbean is home to 23 small and island countries that are surrounded by coasts and are especially vulnerable to the effects of climate change. «With this second blue bond, IDB Invest continues to promote an innovative approach to finance climate action and attract new investors to the region,» explained the IDB group.
Blue bonds are now emerging as an innovative way to finance ocean and water solutions, create sustainable business opportunities and signal responsible ocean management to the market.
