Financing a Sustainable Future

Making an Impact: BNY Mellon helps to advance society’s transition to a more sustainable future

Financing a Sustainable Future

Making an Impact: BNY Mellon helps to advance society’s transition to a more sustainable future

An innovative blue bond promotes sustainable fishing, while other green finance tools help to fund a more secure future in Korea, Chile and beyond.

 

Blessed with stunning beaches, teeming coral reefs and diverse ocean life, the people of the Seychelles islands treasure their marine resources. Many residents of this archipelago off the coast of Africa rely on the ocean for fishing, but their livelihood is threatened. Plastic pollution, the effects of climate change, habitat degradation, and overfishing are draining global marine fish stocks, with one in every three stocks overfished.1

 

To ensure a more secure future, the Republic of Seychelles is using an innovative investment—the world’s first sovereign blue bond—to protect its marine resources. Serviced by BNY Mellon and partially guaranteed by the World Bank, this $15 million bond will provide funds to develop economically and environmentally sustainable fishing practices in a designated area of the Seychelles. The Seychelles blue bond, like the more familiar green bond, is intended to encourage sustainability and support climate-related or other types of special environmental projects.

 

Each year, BNY Mellon helps to advance society’s transition to a more sustainable future by supporting issuers worldwide who seek to raise capital via green and other forms of sustainable bonds.

BNY Mellon administered 100+ green bonds in 2019, ranking #1 in global market share with 15% in deal value.

For instance, in 2019, securities broker Mirae Asset Daewoo appointed BNY Mellon to service a first-of-its-kind sustainability bond in Korea. Totaling $300 million in issuance proceeds, this bond will fund or refinance new and existing projects that align with the International Capital Markets Association’s Sustainability Bond Principles.

 

Elsewhere, the Republic of Chile appointed BNY Mellon as trustee for Latin America’s first sovereign green bond, valued at approximately $2.5 billion. The Chilean Ministry of Finance will channel proceeds into projects eligible under Chile’s Green Bond Framework, including infrastructure for electrified transport, renewable and water management projects, and eco-friendly buildings.