Standard Chartered backs massive ocean protection deal in Caribbean paradise
The Bahamas got a smart deal to protect its waters using debt-swap magic. Private companies stepped in with guarantees while Standard Chartered provided a low-cost loan that will save marine life
In a ground-breaking financial move‚ the Bahamas secured a deal thats changing how island nations protect their waters. The country found a way to free-up $124 million by swapping old expensive debt for a cheaper one
The deal works like this: Standard Chartered bank gave a $300 million loan (with a nice 4.7% interest rate) which helped buy-back some pricey bonds and an old bank loan. The money saved will now go straight into ocean protection projects
- Managing 6.8 million hectares of marine areas
- Fixing hurricane-damaged mangroves
- Starting new ocean protection programs
The private sector jumped in to help – Builders Vision put up $70 million as guarantee and AXA XL added $30 million in insurance. The Inter-American Development Bank joined with a $200 million partial guarantee; making the whole thing work
This deal is extra-important because the Bahamas (with its low-lying islands and coral reefs) needs help after Hurricane Dorian hit about 5 years ago. Its a smart way to handle debt while protecting nature: two birds with one stone
The nature bonds programme is one of the few mechanisms that can drive financing at scale towards climate and nature in the global south
The deal shows how creative thinking helps fix the $942 billion nature funding gap – especially after last months UN meeting in Colombia didnt come up with a clear plan. Dennis Eisele from Standard Chartered thinks this kind of deal will become more common: showing theres lots of money ready for these projects
