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The Indian Ocean archipelago's economy is dependent on the ocean
and on fisheries for food, nutrition and livelihoods, marine
habitats, and other blue economy sectors like tourism.
The 10-year bond was sold directly to three social impact
investors based in the United States; Calvert Impact Capital,
Nuveen, and Prudential, through Standard Chartered which served
as the placement agent, said the World Bank, which supported the
issuance.
"The general population will benefit from a healthier marine
environment and increased food security," said the Bank, which
offered a partial guarantee for the bond.
In February, Seychelles gave details on the first 210,000 square
kilometer (81,000 square miles) area to be conserved, limiting
activities like fishing, oil exploration and large-scale
development in the most fragile habitats, while allowing them
under certain conditions in the rest of the area.[nL4N1QC2YP]
The archipelago of fewer than 100,000 people mainly relies on
tourism and fishing for revenue, but in recent years oil and gas
companies have been exploring its turquoise waters, home to
dugongs, turtles and tuna.
Seychelles, rich in underwater reefs and postcard-perfect
beaches, defaulted on its debt in 2008 and clawed its way back
to prosperity with assistance from the International Monetary
Fund.
Government officials have since been searching for ways to
preserve their environment without endangering financial
stability.
In February, it said it had reached an agreement with U.S.-based
conservation group The Nature Conservancy to buy up nearly $22
million of Seychelles’ outstanding $406 million sovereign debt
in return for the country designating a third of its marine area
as "protected".
(Reporting by George Obulutsa; Editing by Duncan Miriri and Ed
Osmond)
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