Growing investor interest in blue bonds
The BlueInvest Investor Report 2024 reveals a significant increase in blue economy investments. The market is now three times larger than it was a decade ago, surpassing 13 billion euros over the five-year period between 2018 to 2023. Notably, one in five investors are actively seeking or considering investments in “blue” projects, reflecting the rising interest in this emerging market.
As the European leader in banking and financial services, BNP Paribas is at the forefront of this trend, issuing and structuring blue bonds designed to support Ocean preservation and the sustainable management of freshwater resources. From Latin America to mainland France and even Antarctica, several experts across the Group highlight inspiring initiatives financed through these “blue” instruments.
What is a blue bond?
Functioning much like green or other ESG bonds, a blue bond channels capital toward initiatives such as clean water infrastructure, sustainable fisheries, marine biodiversity conservation, and coastal resilience. Blue bonds are issued by a wide range of actors (from sovereigns and development banks to financial institutions and corporates) and appeal to investors seeking both environmental impact and portfolio diversification.
“To qualify as “blue”, the framework must align with the Green Bond Principles (GBPs) established by the International Capital Market Association (ICMA) and the proceeds of the issuance must be allocated to specific UN Sustainable Development Goals (SDGs) — most notably SDG 6 (Clean Water and Sanitation) and SDG 14 (Life Below Water)”
BNP Paribas’ Updated Green Bond Framework: integrating the blue dimension
BNP Paribas has been among the early actors bridging green and blue finance. Building on a framework first established in 2016, the Group updated its Green Bond Framework in May 2025 to integrate the latest international guidelines from the ICMA and the International Finance Corporation (IFC).
"The market has evolved beyond renewable energy, clean transportation, green building or energy efficiency,” explains Ana Jantarada, Head of Sustainable Center Portugal, BNP Paribas, who led the Green Bond Framework update. “With the growing relevance of blue finance, we wanted our framework to reflect both ICMA’s focus on Ocean-related activities and IFC’s broader interpretation that includes water management.”
This update ensures that BNP Paribas’ eligible asset pool now encompasses a wider range of activities — from offshore wind and green ships to sustainable water management and plastic recycling — aligning with both green and blue market expectations. Since May 2025, the Group has traded three “blue” private placements for a total amount of 75 million euros.
“By embedding blue assets within its green framework, BNP Paribas is helping accelerate capital mobilisation towards concrete and critical projects that ensure access to water, strengthen food security, support climate change adaptation and improve pollution management and prevention,” adds Julie Miller.
issued by BNP Paribas for three “blue” private placements" since May 2025.
“Investors increasingly recognise that biodiversity, Ocean and freshwater ecosystems are integral to the climate transition. As demand increases, identifying eligible blue assets has become a key challenge for issuers, as blue bonds represent only a specific segment of green bonds, with criteria that are and must remain strict.”
How Latin America is driving the global expansion of blue bonds
With 70,000 km of coastline and emblematic rivers, Latin America has an economy that is highly dependent on marine resources. While this puts the region on the front lines of water- and biodiversity-related challenges, its vulnerability to climate change has also become a powerful driver of innovation in blue finance. In 2023, the region accounted for nearly half of global blue bond issuance, representing around 2 billion dollars (SDG News).Although this figure remains modest at the scale of the global market — with blue bonds representing only 0.2% of total sustainable issuances — it reflects a rapid awareness of water and marine challenges across the region.
Building climate resilience through blue bonds
Within BNP Paribas CIB, several teams support sovereign, institutional, and corporate issuers from the development of the issuance framework through to the bond placement. The bank’s role includes structuring bonds aligned with international standards — such as the Green Bond Principles and the IFC’s Blue Finance Guidelines
“The region combines heightened vulnerability to climate risks with a strong awareness of the value of its ecosystems. This makes it a true innovation hub for sustainable finance, particularly through blue bonds.”
Notable blue bonds issuances advancing Ocean protection in the region
CABEI – Restoring the largest lake in Honduras
The Central American Bank for Economic Integration (CABEI) issued a 30 million euros blue bond in May 2025 to finance the restoration of Lake Yojoa, the largest natural lake in Honduras. “This international project — with a central bank based in Honduras, a French structurer, and a Spanish investor — illustrates how blue financing can generate environmental and social co-benefits: improved water quality, biodiversity conservation, and enhanced resilience for local communities,” notes Emilie Siebenborn.
CAF – Financing sustainable projects certified by the UNDP
In June 2025, the Corporación Andina de Fomento (CAF) raised 100 million euros from BNP Paribas Cardif through a private placement. The financed projects — ranging from wastewater treatment in Brazil to marine ecosystem protection in Ecuador — were reviewed and validated by the United Nations Development Programme (UNDP), confirming their alignment with SDGs 6 and 14. “This blue bond required rigorous project identification and verification; this strengthens market credibility and investor confidence in these innovative financial instruments,” adds Emilie Siebenborn
BancoEstado – The first blue bond in the Swiss market
In 2024, Chilean bank BancoEstado reached a symbolic milestone by issuing the first blue bond in the Swiss market, amounting to 100 million Swiss francs. The funds will be used to refinance projects exclusively linked to the Ocean: reducing water stress, marine conservation, sustainable fishing, and securing the coastal food supply chain.
How BNP Paribas created the first blue bond dedicated to private banking investors
In July 2025, BNP Paribas Banque Privée — as our Wealth Management unit in France — launched the first blue bond dedicated to private banking clients —an innovation structured by BNP Paribas CIB teams and designed as a sustainable investment instrument contributing to Ocean health and sustainable water management. “While sovereign blue bonds and private placements already existed, this campaign marks the world’s first blue bond specifically structured for private banking clients,” notes Youri Siegel, Head of Sustainable Structuring Global Markets, BNP Paribas CIB.
Combining blue finance and philanthropy
This structured product is built around three complementary pillars:
- The blue bond designed to mobilise bond markets to finance conservation and restoration projects for coastal and marine areas, as well as water management and treatment initiatives.
- A water and Ocean thematic index linked to the blue bond and developed with MSCI, integrating companies most committed to sustainable water management and marine ecosystem protection, as well as companies offering sustainable solutions for water treatment, management, and recycling.
- An integrated support mechanism, allocating 0.2% of the subscription amount to environmental NGOs via the philanthropic platform Dift.
“This blue bond is the result of close collaboration between the Group’s Banque Privée and CIB teams and perfectly illustrates our ambition to offer thematic and sustainable products to individual clients. We wanted an innovative and transparent product that combines financial performance with a contribution to Ocean protection,”
Clients were also invited to vote for one of three partner organisations supported through the structure —Tara Ocean Foundation, “1001fontaines”, and the “ETRE Mers & Océans schools”. The financial support will contribute to funding Tara Ocean’s Arctic polar station and long-term scientific data collection; to developing small drinking water production stations in rural areas of Cambodia, Vietnam, Myanmar, Madagascar and Bangladesh with “1001fontaines”; and to creating a “Sea Campus” in Hyères with the “ETRE schools”, as well as awareness and clean-up activities for the public.
“We know our clients want to see the concrete impact of their investments, more value-sharing, and greater personalisation,” explains Vanessa Bouquillion-Coqueret, Head of Engagement at BNP Paribas Banque Privée and Family Shareholder Private Banker. “The donation component adds these dimensions, and the Dift platform allows them to select the final beneficiary organisation while also tracking the impact.”
Ocean and water themes rank among top investor priorities
This blue bond is also the result of an ongoing dialogue between BNP Paribas Banque Privée and their clients. Since 2018, they have regularly surveyed clients on their SDG priorities. Across three client surveys, water and the Ocean consistently rank among the top investor priorities.
This strong investor interest was confirmed during the product’s commercialisation: it was oversubscribed within a few weeks, surpassing initial expectations to reach 75 million euros, demonstrating renewed interest in thematic and sustainable products.
raised in a few weeks for the first blue bond on the market for retail clients.
“This is no coincidence. Water is an issue that resonates with everyone: it is both universal and local, connecting health, biodiversity, and climate. The success of this first-ever blue bond for private clients, reinforced by the strong interest of our clients in sustainable finance innovation, opens the door to a new generation of responsible solutions.”
