New debt-restructuring blue bond helps Belize direct US$ 4.2m annually to protect 30% of its ocean

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Following the Republic of Seychelles’ groundbreaking first blue bond in 2016, Belize recently announced a tender offer for restructuring nearly US$ 550m of its external debt – supported by The Nature Conservancy’s (TNC) NatureVest team, with a commitment to protect up to 30% of its ocean, including the UNESCO World Heritage-recognized Barrier Reef Reserve System. The bond is funded with US$ 364m arranged by TNC, which is insured by the American agency, the International Development Finance Corp, and would result in approximately US$ 4.2m annual conservation investment. 

Belize has a rich natural capital and is considered by many as a conservation success story: from thriving seagrass and mangrove forests, to its aforementioned Barrier Reef System – the second largest expanse of coral in the world, featuring three of the four coral atolls found in the Atlantic Ocean – it is also home to 77 species listed as threated by the IUCN. The people of Belize depend on their ecosystem and any decline in its health will affect the population and its livelihoods. Like many SIDS, Belize attracts many tourists yearly, averaging at 209,000 visitors per year. This constitutes a significant amount of revenue, estimated at 41% of its national income. However, the pandemic saw Belize’s tourism revenue sharply decline in 2020, bringing forward the all-too-common SIDS issue of access to climate adaptation and marine conservation finance. A decline in revenue, coupled with the economic and climate crises, puts SIDS in a state of multifaceted vulnerability.  

Considering, it makes it all the more impressive to see first the Seychelles, then Belize and now, the more recently announced, Fiji blue bond, lead the way towards employing innovative solutions, that address economic challenges while also conserving the environment and protecting the oceans. As Administrator Steiner put it “blue bonds are an investment that help turn the tide in the ocean’s favour." 

Read the original article and find out more SIDS' success stories in our latest Bulletin.