Global Courant 2023-05-16 11:20:00
JAKARTA – Indonesia turns to the yen market for a rare sale of blue bonds to raise funds for ocean-related projects.
The Southeast Asian country is marketing a Samurai deal that includes several blue bond tranches. According to the insurers, it would be the first time that a yen-denominated debt of a foreign borrower has been issued. Japanese seafood company Maruha Nichiro Corp also sold the country’s inaugural blue nut last year.
Only a handful of issuers worldwide have sold blue bonds, which were developed in 2018 by the island nation of Seychelles. The green debt variant typically funnels money into areas such as marine conservation and improving water resources, underlining some of the climate’s problems. change.
Yet issuance has been sparse, especially given increasing scrutiny over the use of resources raised from environmental, social and governance debt.
Proceeds from the sale by the Republic of Indonesia will fund investments in ocean conservation and climate change mitigation programs, according to a filing from the publisher. It is the world’s largest archipelago country, consisting of thousands of islands.
Some other sovereign issuers are exploring the Samurai bond market to tap yield-hungry Japanese investors, especially as the Bank of Japan’s ultra-accommodative policy keeps interest rates close to zero. BLOOMBERG
Climate risks force Indonesia to explore blue
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