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Incorporating Blue Bonds as a funding alternative for a sustainable development project

Author

Listed:
  • Fareis Althalet

    (Business AdministrationDepartment, Faculty of Social Science and Political Science, Mulawarman University, Samarinda, Indonesia)

  • Tira Siya Fajar Rahayu

    (Business AdministrationDepartment, Faculty of Social Science and Political Science, Mulawarman University, Samarinda, Indonesia)

  • Hera Hera

    (Business AdministrationDepartment, Faculty of Social Science and Political Science, Mulawarman University, Samarinda, Indonesia)

  • Ayu Fil Akhirati

    (Business AdministrationDepartment, Faculty of Social Science and Political Science, Mulawarman University, Samarinda, Indonesia)

  • Pingki Pingki

    (Business AdministrationDepartment, Faculty of Social Science and Political Science, Mulawarman University, Samarinda, Indonesia)

  • Nirwana Nura

    (Business AdministrationDepartment, Faculty of Social Science and Political Science, Mulawarman University, Samarinda, Indonesia)

  • Angelika Gita Andreana

    (Fisheries TechnologyDepartment, Faculty of Fisheries and Marine Science, Mulawarman University, Samarinda, Indonesia)

Abstract

This study aims to examine Blue Bonds as a guarantee issued by the issuer (government and companies) as alternative financing. Compared to ordinary bonds that are issued only to meet the issuer's funding needs, the transaction results in Blue Bonds will be used to support marine protection, fisheries governance, waste and water pollution management, and the restoration of marine ecosystems. In this study, the author uses the method literature review sourced from journals, books, reports from related ministries, international financial institutions such as the World Bank, and news from national and international media. The results of this study indicate that by issuing Blue Bonds, the government and companies will get more funds from bond investors. Investors will receive a return in the form of a coupon (fixed interest rate) from the issuer and pay according to schedule and the initial principal investment. Not only that, the government and companies will get a good reputation among investors and actively contribute to Indonesia's maritime development. Key Words:Blue Bonds, Sustainable Development, Issuance of Blue Bonds

Suggested Citation

  • Fareis Althalet & Tira Siya Fajar Rahayu & Hera Hera & Ayu Fil Akhirati & Pingki Pingki & Nirwana Nura & Angelika Gita Andreana, 2021. "Incorporating Blue Bonds as a funding alternative for a sustainable development project," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(5), pages 129-134, July.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:5:p:129-134
    DOI: 10.20525/ijrbs.v10i5.1310
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    References listed on IDEAS

    as
    1. Josué Banga, 2019. "The green bond market : a potential source of climate finance for developing countries," Post-Print halshs-01841868, HAL.
    2. Josué Banga, 2019. "The green bond market: a potential source of climate finance for developing countries," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 9(1), pages 17-32, January.
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    Cited by:

    1. Pieter Bosmans & Frederic de Mariz, 2023. "The Blue Bond Market: A Catalyst for Ocean and Water Financing," JRFM, MDPI, vol. 16(3), pages 1-48, March.

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