Companies Urged To Issue Blue Bonds – The Securities and Exchange Commission (SEC) urged more businesses to utilize blue bonds as a means of obtaining funding for investments in initiatives that directly address ocean protection and sustainable water management on Tuesday.
“As we unveil the guidelines on blue bond issuances, we take a giant leap toward fostering a sustainable blue economy and building a robust capital market in our country,” SEC Chairman Emilio Aquino said.
“Blue bonds, as a specialized class of debt securities, are emerging as a powerful tool globally to promote environmental sustainability, not only in the corporate sector but also at the sovereign level,” he added.
“These bonds provide a unique opportunity for us to channel investments into projects that support marine conservation, sustainable fisheries and responsible aquaculture.”
The money raised from the sale of these bonds, which are referred to as a subset of sukuk and green bonds, will go toward financing blue initiatives, which might also involve sustainable fisheries and aquaculture management, ecosystem restoration, and ecosystem management in marine-based ecosystems.
According to the commission, blue projects ought to “substantially contribute” to the Sustainable Development Goals (SDGs) 6 and 14 of the UN.
While SDG 14 encourages the conservation and sustainable use of oceans, seas, and marine resources for sustainable development, SDG 6 aims to guarantee the availability and sustainable management of water and sanitation for everyone.
The corporate watchdog went on, “The issuer of the blue bonds should evaluate and quantify such contributions.”
“Quantifiable performance measures include greenhouse gas emissions reduced or avoided, ocean-based renewable power generation or energy savings, water savings, plastic waste reduced or avoided, and wastewater treated or avoided, among others,” it said.
The SEC said blue bond issuances must also adhere to the Securities Regulation Code (SRC) rule on the registration of securities, unless the issuance falls under an available exemption under Sections 9 and 10 of the SRC.
In September this year, the commission issued guidelines on eligible blue projects and activities for the issuance of blue bonds.