The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Prime Minister is asserting that The Bahamas is “rewriting the rules of engagement for climate resilience and conservation” with its $300m debt-for-nature refinancing transaction.

Philip Davis KC, unveiling The Bahamas’ debt conversion for marine conservation project, said that repurchasing $300m of the Government’s existing debt via a cheaper Standard Chartered loan is expected to generate an estimated $124m in interest savings over the next 15 years that will be used to finance ocean conservation efforts.

The project, supported by the Inter-American Development Bank (IDB), The Nature Conservancy (TNC)’s nature bonds programme and other partners, will see the Bahamas Protected Areas Fund (BPAF) manage the funding generated by the transaction along with an endowment that is expected to grow to $20m by 2039.

“The Bahamas debt conversion project for marine conservation is more than a financial transaction; it is a declaration of intent, a testament to what can be achieved when creativity meets determination,” said Mr Davis.

“With the support of the Inter-American Development Bank, The Nature Conservancy, Standard Chartered and a coalition of partners, we have crafted an initiative that transforms debt into opportunity, burden into benefit. This project allows us to refinance $300m in external debt, generating an estimated $124m in savings over 15 years.

“These savings are not abstract figures; they represent real investments in the future of our people and our planet. They will fund critical conservation efforts, strengthen the management of our Marine Protected Areas and safeguard the ecosystems that sustain us all,” he added.

“And we are thinking beyond the immediate. A $20m endowment, set to grow by 2039, ensures that this work will continue long after the debt conversion project concludes. It is a commitment not just to today’s Bahamas, but to future generations who will inherit this nation and the responsibility to care for it.”

The loan has a 4.7 percent interest rate and is backed by a $200m credit guarantee from the IDB, alongside a $70m co-guarantee from Builders Vision and $30m in credit insurance from AXA XL.

“This initiative also brings to bear a comprehensive financial framework, leveraging guarantees from the IDB, Builders Vision and AXA XL to secure favourable terms. It demonstrates that even a small nation can command the attention and partnership of the world’s most respected institutions when the vision is bold and the purpose is clear,” Mr Davis said.

“Through this innovation, we are rewriting the rules of engagement for climate resilience and conservation. The Bahamas is showing the world that we are not passive spectators to the forces of nature; we are active stewards of our destiny. At its heart, this initiative is about securing a future where Bahamians thrive in harmony with the environment that sustains us.”

Mr Davis said the savings and endowment will help to ensure that Bahamian waters are protected for years to come and provide long-term stability for marine conservation and management.

“The $124m in savings this project generates will fund efforts to protect our oceans, which are not merely geographic features but the lifeblood of our communities. From coral reefs that shelter marine life to mangroves that shield our shores, these ecosystems are the unseen engines of our economy and guardians of our homes,” said Mr Davis.

“For the fishermen who rise before dawn, this project means sustainable waters teeming with life. For families living along our coasts, it means protection from storm surges and rising seas. For our children, it means a chance to inherit a Bahamas where natural beauty is preserved and economic opportunities abound.

“The establishment of a $20m endowment ensures that these efforts will endure beyond the project’s term, offering long-term stability for marine conservation and management. This initiative also reflects a broader commitment to strengthening our nation. Through improved debt management and institutional frameworks, The Bahamas positions itself as a leader in resilience and sustainability.”