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Planet Tracker Announces “Blue Bond” Dashboard for Investors

The financial think tank Planet Tracker has announced an interactive tool aimed at encouraging investors to consider funding the regeneration of wild fish stocks by issuing “blue bonds.”

Launched on Monday, the Blue Recovery Bond Dashboard aims to show how fishing companies and investors can benefit from temporary declines in fishing levels that help wild fish stocks recover. It is said.

Approximately 90% of the world’s fish stocks are completely or overfished, and the wild seafood industry will plummet if it does not act to reduce current overfishing levels and replenish ecosystems. Planet Tracker warns that it will.

So-called “blue bonds” could help tackle this problem by harnessing the power of financial markets to help commercial fishing companies agree to voluntarily reduce their catches.

In this model, the fishing company accepts a voluntary decrease in catch over a period of time, and investors allow this freeze by compensating the fishing company for the decrease in net cash flow and earnings that occurred during this period.

According to Planet Tracker, this period of control will replenish the ecosystem and ultimately benefit the world’s fisheries. Because it protects and boosts future quantities of wild fish stocks.

Once fish inventories recover, fishing companies will be able to fish at higher levels again and investors will stop paying, Planet Tracker explained. The fishing company then repays the bond to the investor in the form of a coupon calculated as a function of wild catch until the bond expires.

Planet Tracker has calculated that these so-called “blue bonds” will bring significant economic benefits to investors. Assuming a 40% reduction in catch over five years, the investor will generate a 25% internal rate of return, an 8% discount rate, and a $ 50 coupon per ton of fish caught by the fishing company paid to the investor. can do. said. In addition, if a company catches more than its quota, the cash received must be refunded to the investor.

However, like any other investment, there is a risk that investors will not be able to reimburse their fishing activities as if fish stocks were not considered to be restored to sustainable levels.

Think tanks also acknowledged that there are significant barriers to Bluebond’s success, and emerging sectors have agreed on ways to find suitable bond issuers to underwrite new bonds, the species and region allocations that Bluebond will cover. I am facing a question about how to do it. Also, a way to monitor compliance with rules and regulations and limit the impact of the model on the rest of the seafood chain and its workforce.

According to Planet Tracker, the purpose of the new dashboard model is to allow investors to enter their own modeling assumptions so that investors can actually see how Blue Bond works. was.

https://www./news/4033616/ocean-finance-planet-tracker-launches-blue-bond-dashboard-investors Planet Tracker Announces “Blue Bond” Dashboard for Investors

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