Blue Bond Concept

Blue Bond Concept

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Blue Bond is comparable to other bonds in which you may invest and get good returns, but being a sustainable bond, it invests within healthy seas and blue economies. Blue Bonds are extremely similar to traditional bonds in that an investor puts his money and receives a yearly return as well as the capital amount once the bond matures. However, in the case of Blue Bonds, the issuer of the bond invests this money in long-term blue economy initiatives. The yearly gross marine revenue creation is over $2.5 trillion, and that's nearly equivalent to a country's whole GDP.

Operation of the Blue Bond - Like any financial bond, the issuer of the bond must have a stream of earnings from which to pay the interest on an investor's capital investment. Blue Bonds, on the other hand, earn money by making investments in blue economies and environmentally friendly initiatives. These Blue Bonds, also known as Use of Proceed Bonds, were previously issued by China, the Nordic Investment Bank, and the Seychelles. A Blue Bond may be given out by the central government, corporations or, banks of a country.

Blue Bond Funded Projects - A Blue Bond sponsors a variety of ocean sustainability projects that lead to the development of a blue economy. The grouping of projects permitted under the blue bond, however, differs according to each country's domestic norms and regulations. Also, when completing a project under Blue Bond, effort is taken to ensure that the project does not hurt aquatic organisms or degrade water quality in any way. Fisheries and Aquatic tourism, the aquaculture industry, sewage sanitation, shipping, management of ecosystems and regeneration are some of the most regularly supported project areas under the Blue Bonds.

Advantages of Blue Bonds

• There is enough water accessible on the planet, and it is found that industries associated to seas and rivers are fairly thriving. Investing in Blue Bonds might thus provide a good return on your investment.

• In addition to generating a good profit, Blue Bonds allow you to contribute indirectly to sustainability and a social cause.

• Unlike other themed bonds, Blue Bonds have a lower risk of loss because they are endorsed by the nation's government and numerous additional bodies.

• The World Bank offers free credit warranties to Blue Bond investors.

Blue Bonds within India - A Blue Bond is not your typical financial bond, just 6-7 Blue Bonds are currently issued internationally. Nevertheless, numerous countries are preparing to introduce Blue Bonds and put money into Blue economies. nonetheless, Blue Bonds have not yet acquired popularity in India; nonetheless, the stock market regulator of India, SEBI, has lately invented the theory of Blue Bonds within the nation. SEBI has presented the Blue Bonds concept to the Finance Ministry. SEBI further stated that the blue economy presently contributes 4% of India's entire GDP.