Caribbean Newsletter Spring 2025
Bahamas Debt Conversion for Marine Conservation
Our latest updates from across the Caribbean.
In November 2024, the Government of The Bahamas and TNC along with partners announced the Bahamas Debt Conversion for Marine Conservation, which is estimated to generate $124 million in funding for marine conservation in the multi-island state.
Announcing the deal, Prime Minister of The Bahamas, the Hon. Philip Davis, eloquently articulated the real meaning of the transaction to the country’s people: “For every dollar saved, for every reef protected, for every mangrove restored, we edge closer to the resilient Bahamas we envision.” He continued, “for the fishermen who rise before dawn, this project means sustainable waters teeming with life. For families living along our coasts, it means protection from storm surges and rising seas; for our children, it means a chance to inherit a Bahamas where natural beauty is preserved, and economic opportunities abound.”
The prime minister explained that the project is much more than a financial transaction: “It is a declaration of intent, a testament to what can be achieved when creativity meets determination.” Prime Minister Davis acknowledged that the country faces the dual crises of climate change and biodiversity loss, but rather than despair, it has chosen innovation.
TNC’s CEO, Jennifer Morris, noted that The Bahamas traditionally has a strong conservation history, and the debt conversion will assist the nation in accomplishing its goals. “I am especially excited about this Nature Bonds project, as it will help The Bahamas reach its conservation goals and support sustainable livelihoods,” Morris said. “This is further proof that debt conversions, with the right conservation commitments and technical assistance, are an effective market-based solution.”
Rochelle Newbold, director of the government’s Climate Change and Environmental Advisory Unit, stated that the debt conversion represents an ambitious step that benefits both conservation and the economy. “By strengthening the protection and management programs of the Marine Protected Area system, we will safeguard livelihoods, boost the economy, and contribute to global ocean protection goals,” Newbold said.
As part of the Debt Conversion for Marine Conservation, The Bahamas bought back $300 million of its external commercial debt using proceeds from a new, competitively priced $300 million loan funded by Standard Chartered. This arrangement allows The Bahamas to unlock an expected $124 million of new cash funding (plus an additional estimated $8 million of endowment investment returns) for marine conservation over the next 15 years without adding to the country’s debt. The conservation fund endowment, expected to grow to $20 million by 2039, will continue funding marine conservation in The Bahamas beyond the project’s 15-year term. The new financing benefits from a comprehensive credit- enhancement package: a $200 million partial credit guarantee from the Inter-American Development Bank, alongside a $70 million collateralized guarantee from Builders Vision and $30 million in credit insurance from AXA XL.
This is the fifth Nature Bonds project for TNC, alongside those in Seychelles (2016), Belize (2021), Barbados (2022), and Gabon (2023).
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