The Bahamas has announced a significant step in environmental and economic development by refinancing $300 million of its external debt. This decision, made public on November 22, 2024, will redirect over $120 million toward marine conservation projects and efforts to mitigate climate change. The deal is a debt-for-nature swap, marking the fifth such agreement worldwide. In this arrangement, the Bahamian government partnered with The Nature Conservancy, the Inter-American Development Bank, and other financial organizations. The funds will be used for protecting marine ecosystems over the next 15 years. The deal is expected to generate $124 million for conservation, with an additional endowment fund established to support these efforts after 15 years.

The deal is groundbreaking due to its inclusion of private investors and insurers. Builders Vision is providing a co-guarantee, while AXA XL offers credit insurance. Moreover, the agreement is the first to integrate commitments to combat climate change. The funding will primarily be allocated to restoring ecosystems like mangroves and seagrass, both of which absorb carbon dioxide and help reduce global warming. The conservation efforts will also protect important fisheries, such as the spiny lobster trade, which generates over $100 million annually. This initiative is part of the Bahamas’ ongoing commitment to environmental preservation, as more than 17% of its coastal waters are already protected. The country has a long history of conservation, dating back to the establishment of the world’s first protected land and sea park at Exuma Cays in 1958.