By Gerrino J. Saunders
Bahama Journal News Editor

The Bahamas Debt Conversion Project for Marine Conservation has been
recognized by international news and data service Global Capital as the
‘Environment Social and Governance deal of the year’ at the Latin America
Bond Awards 2025.
In November 2024 the Government of The Bahamas, the Nature Conservancy,
the Inter-American Development Bank and several financial partners
completed a Nature bonds project to refinance some $300 million of the
nation’s external commercial debt to help the country improve ocean
conservation and management of its marine protected areas (MPA’s).
The project registered a number of firsts. It was the first time that a private
investor, Builder Vision provided a co-guarantee with a multilateral
development bank (MDB); the first time a private insurer AXA XL provided
credit insurance alongside an MDB in support of a sustainable issuance for
nature and climate and the first time that climate-smart MPA (marine
protected areas) commitments are included explicitly in the conservation
outcomes to support the climate mitigation and adaptation goals.
The Latin America Bond Awards program celebrates the leading names in the
Latin American debt capital markets.
During a communication in the House of Assembly this week Prime Minister
Philip Davis said, “this award is a significant industry acknowledgment of The
Bahamas’ leadership in crafting innovative financing solutions that advance
climate resilience. It also affirms the country’s strong commitment to both
ocean conservation and sound fiscal management.”
When the deal was first announced the leader of the Official Opposition
Michael Pintard called for the “full details” of the $300 million debt for nature
swap.

He said, “they say the plan is to use taxpayer dollars to fund environmental
conservation. But, true to form the Prime Minister has chosen flashy PR and
spin over transparency, instead of giving Bahamians the full details of the
deal.”
During his Communication the Prime Minister explained that The Bahamas
successfully secured USD $300 million in long-term external liquidity at a
highly favourable fixed coupon of 4.7 percent.
According to the Prime Minister, the proceeds were used to repurchase and
retire existing external commercial debt, generating savings over the life of the
new financing arrangement.
“The transaction is expected to provide USD 124 million in funding for marine
conservation over a 15-year period,” he said. “These resources will support
efforts to protect The Bahamas’ critical marine ecosystems, combat climate
change, and safeguard assets essential to the nation’s economy, livelihoods,
and cultural heritage.”
He also noted that the transaction is the largest marine conservation funding
initiative in the nation’s history and represents a major milestone in The
Bahamas’ prudent debt management strategy, leveraging innovative blended
finance to reduce debt service costs, strengthen climate resilience, and drive
the country’s ambitious sustainability agenda.
Mr. Davis said, “as the world takes note of this bold achievement, we now look
forward to the rollout of this initiative across the communities and settlements
of the Family Islands. This program will create job opportunities and establish
community-driven resource management groups. With this new framework,
the future of our marine resources and their stewardship can now be shaped
with the direct involvement of the people who stand to benefit the most from
their sustainable use.”
The Government thanked those Bahamians who worked behind the scenes to
negotiate the landmark transaction, including teams from the Department of
Marine Resources, the Ministry of Finance, the Ministry of Environment and
Natural Resources, Bahamas National Trust, Bahamas Protected Areas Fund,
and the Climate Change and Environmental Advisory Unit.