The Bahamas Debt Conversion Project for Marine Conservation has been recognized by international news and data service GlobalCapital as the ‘ESG Deal of the Year’ at the Latin America Bond Awards 2025, a program that celebrates the leading names in the Latin American debt capital markets.
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.
Utilizing an innovative credit-enhancement structure — supported by the Inter-American Development Bank, Builders Vision, and AXA XL — The Bahamas successfully secured USD 300 million in long-term external liquidity at a highly favourable fixed coupon of 4.700%. 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. 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.
Completed in November 2024, the transaction is the largest marine conservation funding initiative in the nation’s history. It 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.
The Government extends its heartfelt thanks to the Bahamians who worked behind the scenes to negotiate this 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.
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.