The Bahamas has taken a significant step toward environmental and economic progress by refinancing $300 million of its external debt. The announcement, made on November 22, 2024, revealed that over $120 million will be allocated to marine conservation projects and climate change mitigation. This move is part of a debt-for-nature swap, the fifth agreement of its kind globally. The Bahamian government has partnered with The Nature Conservancy, the Inter-American Development Bank, and other financial institutions. These funds will be used to protect marine ecosystems over the next 15 years, with the aim of generating $124 million for conservation.

This deal is considered groundbreaking because it involves private investors and insurers. Builders Vision has provided a co-guarantee, and AXA XL is offering credit insurance. This agreement is the first of its kind to include commitments to combat climate change. The funding will focus on restoring ecosystems such as mangroves and seagrass, which help absorb carbon dioxide and reduce global warming. In addition, the initiative will protect valuable fisheries, including the spiny lobster trade, which contributes over $100 million annually to the economy. The Bahamas has a long history of environmental preservation, with more than 17% of its coastal waters already protected.