Nippon Life invests ¥400m in blue bond

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Japanese insurer Nippon Life has invested ¥400m (£2.3m) in a blue bond issued by seafood company Maruha Nichiro.

This marks the first blue bond issuance in Japan and Nippon Life’s first blue bond investment.

According to the insurer, the funds raised by issuing the bond will be used to support environmentally sustainable fisheries and aquaculture operations. 

Nippon Life said it is strengthening its ESG investment, adding: “Financing of this project is positioned as one such investment.”

What are blue bonds?

Blue bonds are bonds that support marine and water-related conservation projects.

According to the World Bank, Seychelles is the first country in the world to launch a blue bond. In 2018 it raised $15m from international investors including US insurer Prudential Financial. 

While the concept of blue bonds is relatively new, insurers have long been investors of green bonds, which fund projects that have a positive impact on the environment.

According to research and analytics company Research and Markets, the global green bond market was valued at $433.3bn in 2021.

Can blue bonds replicate the same success?

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