Bahamas Unlocks US$124Mn for Ocean Protection via Debt Swap

• The Bahamas has unlocked more than US$120Mn to fund the conservation and management of its oceans and mangroves through a debt swap financed by Standard Chartered and backed by the private sector.

• Debt-for-nature swaps are emerging as crucial tools to help countries achieve conservation and climate goals, addressing the US$942Bn global nature finance gap estimated by BloombergNEF.

• By spending US$215.7Mn to buy back Eurobonds and repurchasing an US$81Mn commercial bank loan using a 4.7% US$300Mn 15- year loan from Standard Chartered, the Bahamas can redeploy interest and principal payment savings into extensive ocean conservation projects.

• The swap comes after nations at a UN biodiversity summit in Colombia in October failed to devise a plan for how countries would reach the ambitious global goals for mobilizing billions of dollars for nature conservation. 

• Funding from the Bahamas swap will go towards restoring mangroves damaged by the hurricane, managing the archipelago's 6.8Mn hectares of marine protected areas and supporting the build out of a new project to protect the entire Bahamian ocean area.

• The Bahamas’ debt swap sets a precedent for leveraging private sector involvement in conservation financing, addressing significant environmental challenges, while promoting sustainable economic development.

(Sources: Reuters & ESG News)