International law firm Simmons & Simmons has advised Blue Alliance on a first of its kind loan facility for Blue Finance, to be provided by BNP Paribas.
In a groundbreaking move for marine conservation and the blue economy, Blue Alliance have launched a senior impact loan facility designed to foster sustainable revenue streams for Marine Protected Areas (MPAs) in emerging countries. The innovative financial mechanism aims to empower MPAs towards financial autonomy.
Blue Alliance, a network of international organisations, including many non-profit organisations, has been at the forefront of managing MPAs to benefit both biodiversity and local communities. The network has been pivotal in preserving over 1,000,000 hectares of high-biodiversity coral reefs, protecting more than 40 endangered species, and enhancing the livelihoods of over 20,000 coastal community members.
The new loan facility, backed by a financing of up to US$2.4 million from BNP Paribas - with the potential for additional lenders to join at a later stage - marks a significant step towards achieving long-term conservation and economic goals.
The facility will finance up to 50% of the initial funding needs for local MPA blue economy projects. Blue Finance, a UK-incorporated entity, will provide funds to local reef-positive entities (LRPEs), which will engage in reef-positive businesses such as responsible eco-tourism, blue-carbon credits, and sustainable aquaculture - creating tangible revenue streams that support MPAs.
The Simmons team supporting Blue Alliance on the development and launch of the new loan facility was led by Banking Partner Elliot Beard and Managing Associate Erica Houlihan.
Commenting on the deal, Elliot Beard said: "This innovative facility sets a precedent for the development of self-sustaining Marine Protected Areas around the world, offering a scalable and sustainable model. As a firm, Simmons is committed to supporting the blue economy. We're proud to be advising Blue Alliance and Blue Finance, who are leading the way in the global effort to protect marine biodiversity and support coastal communities."
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