Behind the deal: Seychelles’ landmark blue bond

Author: IFLR Correspondent | Published: 26 Feb 2019

Latham & Watkins lawyers, counsel to World Bank on the milestone transaction, discuss the creation of this new asset class and how the model can be adapted by other issuers

1 Minute read
The Republic of Seychelles’ pioneering issuance of blue bonds offers insights on how other island nations and coastal states may mobilize funds to support projects to sustainably develop their blue economies, and features an innovative guarantee structure that may facilitate credit support by international financial institutions and development banks for similar transactions in the future. Here Latham & Watkins lawyers, who acted as external counsel for the World Bank on the seminal deal, discuss how it came together.

On October 9 2018, the Republic of Seychelles launched the world’s first blue bond, a pioneering financial instrument designed to support sustainable marine and fisheries projects on the archipelago and in the waters comprising its exclusive economic zone.