IDB Invest and Banco Nacional de Costa Rica (BNCR) have launched Costa Rica’s first blue bond of USD$50 million. Proceeds will help increase financing for companies in Costa Rica for blue economy projects supporting marine-coastal areas; sustainable water and sewage management; and plastic waste management and the circular economy.
This project will also strengthen BNCR’s capital base and support its systematic development of a blue portfolio. IDB Invest committed $25 million to the $50 million bond issuance, with an additional $20 million from FinDev Canada and $5 million from LAGreen.
Oceans and coastal zones are essential to our planet’s natural infrastructure, providing crucial ecosystem services. Costa Rica, with over 51,000 square kilometers of marine territory and 1,200 kilometers of coastline, represents about 4% of the world’s biodiversity. These areas support local livelihoods and significantly contribute to the economy through fishing, tourism, and coastal infrastructure.
Blue bonds are an emerging financial instrument aimed at mobilizing capital to solve social and environmental challenges; create sustainable ocean and water-related business opportunities; and signal responsible ocean stewardship in line with the Sustainable Development Goals (SDGs) and the Paris Agreement.
“At BNCR we’ve been pioneers in creating sustainable financial products that aim to care for and preserve natural resources. We’re thrilled to announce Costa Rica’s first blue bond, an instrument that will help protect the oceans and preserve marine ecosystems, while promoting the blue economy,” said Rosaysella Ulloa Villalobos, CEO of Banco Nacional de Costa Rica. “Last year, we launched the first debit card designed to protect aquifers and guarantee the conservation of the water consumed by people. Our sustainable DNA translates into economic, environmental, and social well-being. With this blue bond we mark a historical milestone that we hope will inspire other countries.”
The bond adheres to the Social and Green Bond Principles, as well as Blue Bond Guidelines established by the International Capital Markets Association (ICMA).
“We are honored to partner BNCR with this pioneering blue bond, which aims to enhance Costa Rica’s financing for blue economy projects, strengthening its capital base, and set a precedent in Central America,” said James Scriven, CEO of IDB Invest. “This landmark initiative paves the way for sustainable investment opportunities and market growth in the blue economy sector.”
IDB Invest also supported BNCR with advisory services, including blue investment analysis, developing a Sustainable Financing Framework with blue taxonomy, co-financing the second-party opinion, and conducting a training program to enhance sustainable finance capabilities. IDB Invest and BNCR will collaborate to identify further thematic investment categories, focusing on climate and social areas such as Afro-descendant communities, the silver economy, and indigenous peoples.
