{"id":370071,"date":"2026-08-22T16:56:01","date_gmt":"2026-08-22T11:26:01","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=370071"},"modified":"2026-08-22T16:56:01","modified_gmt":"2026-08-22T11:26:01","slug":"indias-first-blue-bond","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-first-blue-bond\/","title":{"rendered":"India\u2019s First Blue Bond"},"content":{"rendered":"<div class=\"content-box-green\">\n<p style=\"text-align: justify;\"><b>News: <\/b><span style=\"font-weight: 400;\">India is preparing to enter the blue bond market, with <strong>Sagarmala Finance Corporation and Vadodara Municipal Corporation<\/strong> planning bond issues worth a combined \u20b91,200 crore.<\/span><\/p>\n<\/div>\n<h2 class=\"red-h2-box\" style=\"text-align: justify;\"><b>About India\u2019s First Blue Bond<\/b><\/h2>\n<figure style=\"width: 340px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcRuGTwZyh2Vmt-3wiQhAYHxdoj4rgppg20zhofbGsFAJg&amp;s\" alt=\" Blue Bond \" width=\"340\" height=\"327\" \/><figcaption class=\"wp-caption-text\">Source: World Bank<\/figcaption><\/figure>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A <strong>blue bond<\/strong> is <\/span><b>a debt instrument <\/b><span style=\"font-weight: 400;\">where the money raised is earmarked for projects that <\/span><b>support oceans, marine ecosystems, water management or the wider sustainable blue economy.<\/b><\/li>\n<li style=\"text-align: justify;\"><b>Comparison between green bond and blue bond:\u00a0<\/b>\n<ul>\n<li><b>Similarity: <\/b>Investors lend money to the issuer and earn interest, with the principal repaid at maturity.<\/li>\n<li><b>Difference:<\/b><span style=\"font-weight: 400;\"> The key difference is that the<\/span><b> proceeds are tied to specified water and ocean-related projects<\/b><span style=\"font-weight: 400;\"> like sustainable fisheries and aquaculture, marine conservation, coastal resilience, pollution control, sustainable ports and waterways, water security and marine renewable energy.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><strong>Mandate:<\/strong> As investors are putting money into the bond partly on the basis of its environmental purpose, <\/span><b>the issuer has to provide greater transparency on how that money will be used,<\/b> and <strong>what environmental impact the projects are expected to have.<\/strong><\/li>\n<li style=\"text-align: justify;\"><b>Reason why India is entering blue bond economy:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">India has already<\/span><b> built a sizable sustainable debt market around green bonds,<\/b><span style=\"font-weight: 400;\"> but has not yet had a dedicated domestic blue bond issue.\u00a0\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">India\u2019s <\/span><b>blue economy<\/b><span style=\"font-weight: 400;\"> is important to the country.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It contributes around <\/span><b>4.1% of GDP<\/b><span style=\"font-weight: 400;\">, while about <\/span><b>95% of India\u2019s trade by volume<\/b><span style=\"font-weight: 400;\"> moves by sea. <\/span><b>India also has a 7,517-km coastline and a large Exclusive Economic Zone.\u00a0<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The government wants to <\/span><b>increase the maritime sector\u2019s contribution to GDP from around 4% today to 12% by 2047<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Achieving this will require major investment in <\/span><b>ports, shipping, waterways, shipbuilding and other marine infrastructure<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">To fund this growth, the government is considering options such as <\/span><b>blue bonds, blended finance, public-private partnerships and sovereign guarantees<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><b>Institutions: Sagarmala Finance Corporation,<\/b><span style=\"font-weight: 400;\"> the government&#8217;s maritime-focused financing institution, is considering a \u20b91,000-crore blue bond issue.<\/span>\n<ul>\n<li><b>Vadodara Municipal Corporation<\/b><span style=\"font-weight: 400;\"> is separately seeking approvals for a \u20b9200-crore blue bond.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Global Blue Bond Status:\u00a0<\/b>\n<ul>\n<li style=\"text-align: justify;\"><b>Seychelles<\/b><span style=\"font-weight: 400;\"> issued the <\/span><b>world&#8217;s first sovereign blue bond<\/b><span style=\"font-weight: 400;\"> in 2018 with <\/span><b>support from the World Bank.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The<\/span><b> Global cumulative issuance<\/b><span style=\"font-weight: 400;\"> reached $15.25 billion by mid-2025, more than doubling year-on-year, according to World Bank data.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, <\/span><b>Blue bonds account for only around 0.24 per cent of the broader <\/b><span style=\"font-weight: 400;\">sustainable bond market.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The<\/span><b> market is projected to reach $70 billion by 2030.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The global green <\/span><b>bond market has already crossed $1 trillion in cumulative issuance.<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: India is preparing to enter the blue bond market, with Sagarmala Finance Corporation and Vadodara Municipal Corporation planning bond issues worth a combined \u20b91,200 crore. About India\u2019s First Blue Bond A blue bond is a debt instrument where the money raised is earmarked for projects that support oceans, marine ecosystems, water management or the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/indias-first-blue-bond\/\">Continue reading <span class=\"screen-reader-text\">India\u2019s First Blue Bond<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,4182,12039],"tags":[11872,3590],"class_list":["post-370071","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-environment","category-knolls","tag-9pm-daily-factly","tag-pib","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/370071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=370071"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/370071\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=370071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=370071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=370071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}