The United Nations Capital Development Fund (UNCDF), in partnership with the Swiss Agency for Development and Cooperation (SCD), is launching the Blue Peace Financing Structure for the first ever Blue Peace Bond. The event will be held during the World Economic Forum (WEF) in Davos, on January 19, 2023, from 9.00 to 10 am, at the House of Switzerland, Nordside.
According to the information gathered by Sahel standard, this important launch is a critical phase in the implementation of the Blue Peace Financing Initiative, which promotes the access to public and private capital for the Gambia River Basin Development Organization (OMVG) for the implementation of its Master Plan and Joint Investment Plan.
The Blue Peace Financing initiative opens a new and innovative market in the Sustainable Finance field. It creates new ways for regional non-sovereign entities managing natural resource, such as river basin organizations, to access financial capital.
Through the issuance of Blue Peace Bond, OMVG will be able to mobilize financial sources for projects under its Master Plan and joint investment plan, allowing the organization to implement the underlying projects more efficiently and effectively. This will benefit the local population in the member states. The underlying financing structure uses an approach similar to Green Bond financing to achieve better financing terms and market access, while considering risks and mitigation instruments and a credit enhancement mechanism.
The issuance of the first ever Blue Peace Bond is planned in 2023. The Bond will finance a portfolio of projects including infrastructure projects with a high impact on the economic empowerment of vulnerable populations as well as providing access to clean and affordable energy, safe drinking water, food security and other water-related services. The size of the first portfolio for the OMVG Blue Peace Bond can reach up to USD 2 billion.
The Blue Peace Financing Initiative is innovative sustainable finance in action to support the 2030 Agenda for Sustainable Development.