India’s 1st Blue Bond:
Sagarmala Finance Corporation announced plans to issue India’s first blue bond to diversify its funding sources and finance maritime and coastal infrastructure projects.
- A blue bond is a debt instrument used to raise funds specifically for projects linked to oceans, seas, coasts, rivers and other water-based ecosystems.
- It is generally targeted at investors interested in environmentally focused and sustainable finance instruments.
- The funds will be used for lending towards the development of maritime and coastal infrastructure, including ports, port connectivity, shipbuilding, inland waterways and coastal road networks.
- Blue Bond vs Green Bond: A green bond is generally used to fund broader climate and environmental projects, while a blue bond specifically focuses on ocean, marine and water-related sustainable projects.
- Seychelles issued the world’s first sovereign blue bond in 2018, while Belize used a debt-for-ocean swap in 2021 to support marine conservation.
- India’s long coastline, large fishing communities, port network and climate-vulnerable coastal regions make blue bonds important for financing sustainable blue economy projects.
- India’s blue economy includes fisheries, shipping, offshore energy and coastal tourism, contributing about 4% to GDP and supporting around 4 million livelihoods.
- Blue bonds can help India attract global sustainable finance, reduce pressure on budgetary resources, support coastal communities and balance maritime infrastructure growth with marine conservation.
- Sagarmala Finance Corporation is a state-owned maritime-focused lender established in 2016 under the Ministry of Ports, Shipping and Waterways.
- It received a Non-Banking Financial Company (NBFC) licence in June 2025.
