November 22nd, 2024 – Nassau, Bahamas

The Bahamas National Trust (BNT), along with other partners in conservation, natural resource management, and finance, is supporting The Government of The Bahamas with the official launch of “The Bahamas Debt Conversion Project for Marine Conservation” – a historic initiative that will allow the country to refinance commercial debt while receiving financing to support marine conservation.

As the local conservation organization responsible for managing The Bahamas’ national parks and protecting critical terrestrial and marine ecosystems, the BNT’s role will be collaborating with the Bahamian government and local communities to strengthen stewardship of the country’s recently expanded marine protected areas (MPAs); contribute to the creation of a National Mangrove Management Plan designed to enhance protection, management, and restoration of these essential habitats that support climate resiliency; and develop and implement a marine spatial plan to address increasing demands for use of The Bahamas’ ocean and improve management of the country’s marine areas.

The BNT applauds this project, which will empower us to enhance our capacity for effectively managing MPAs, safeguarding biodiversity, and supporting climate resiliency and sustainable livelihoods across the country.

Developed in collaboration with the Inter-American Development Bank (IDB), The Nature Conservancy (TNC), Builders Vision, AXA XL, and Standard Chartered, the innovative Bahamas Debt Conversion Project for Marine Conservation will generate an estimated USD 124 million of new cash funding for marine conservation over the next 15 years, without adding to the country’s debt. The project is part of the Bahamian authorities’ fiscal consolidation efforts. By repurchasing USD 300 million of external commercial debt using proceeds from a new USD 300 million loan provided by Standard Chartered—secured with favorable terms thanks to credit enhancements from the IDB, Builders Vision, and AXA XL—The Bahamas has reduced its debt stock and scheduled debt service, while simultaneously unlocking essential funding for marine and climate priorities. An endowment, expected to grow to USD 20 million by 2039, will continue funding marine conservation in The Bahamas beyond the project’s 15-year term.

The Bahamas Debt Conversion Project for Marine Conservation is the most recent of TNC’s Nature Bonds projects, which are powerful tools that combine debt refinancing, ecological and social science, conservation planning, and policy to support countries in achieving their conservation and climate goals. TNC is serving as project sponsor, conservation/technical advisor to The Government of The Bahamas, and credit enhancement facilitator.

Rothschild & Co. served as a financial advisor to The Bahamas Ministry of Finance on this transaction. The conservation funding generated by this project will be managed by The Bahamas Protected Areas Fund (BPAF), a conservation trust fund.

BNT Executive Director Lakeshia Anderson-Rolle said: “Achieving lasting conservation requires bold and sustainable solutions, and funding remains one of our greatest challenges in managing protected areas. The resources from this project will empower us to scale our conservation efforts, build a team capable of managing our growing national park system, and enhance critical infrastructure across our national parks. This initiative is a transformative step toward safeguarding The Bahamas’ natural legacy, ensuring that our unique ecosystems, biodiversity, and local communities thrive for generations.”

As the largest marine conservation funding program in the country’s history, The Bahamas Debt Conversion Project for Marine Conservation will bolster the management of The Bahamas’ extensive marine protected areas, which already encompass more than 17% of its nearshore environment—an indication of the nation’s longstanding commitment to marine conservation, as one of the largest marine protected area systems in the Caribbean.

“Since 1958 The Bahamas has led in ocean conservation, specifically with the establishment of the Exuma Cays Land and Sea Park (ECLSP). Now our nation takes another ambitious step with an economic program that promotes ocean conservation and benefits local communities,” said Rochelle Newbold, Director of the Climate Change and Environmental Advisory Unit of the Government of The Bahamas. “By strengthening the protection and management programs of the marine protected area system, we will safeguard livelihoods, boost the economy, and contribute to global ocean protection goals.”

“Investments in conservation and climate resilience across The Bahamas yield considerable benefits across our islands and for our neighbors,” said Bahamas Protected Areas Fund Board Chair Glenn Bannister.  “Growing threats to our natural environment, including over-exploitation, climate change, and increasingly limited funding, are impacting the sustainable management of our resources and have placed critical ecosystems and ecosystem services at risk.

“BPAF applauds The Government of The Bahamas, Inter-American Development Bank, and The Nature Conservancy for structuring The Bahamas’ first debt conversion designed to generate sustainable revenues to protect our most important marine ecosystems and support Bahamian livelihoods. We are pleased to be a part of this very innovative solution.”

This collaborative undertaking between public and private sectors underscores the impact of partnerships to achieve ambitious conservation outcomes. The project represents a commitment to a healthier environment, a stronger economy, and a more resilient future for all Bahamians.