2022- Barbados Blue Bonds for Ocean Conservation

In September 2022, Barbados made a monumental stride in marine conservation with a $150 million debt conversion, a collaborative effort between the Government of Barbados (GoB), The Nature Conservancy (TNC), and the Inter-American Development Bank (IDB). This groundbreaking initiative secures long-term, sustainable financing for protecting up to 30% (approximately 55,000 square kilometers) of its Exclusive Economic Zone (EEZ) and Territorial Sea by 2030, aligning with global biodiversity targets.

As part of TNC's Blue Bonds for Ocean Conservation Program, Barbados refinanced existing, more expensive debt (7.2% average cost) with a new "Blue Loan" at a significantly lower 4.9% all-in cost. Arranged by Credit Suisse and CIBC FirstCaribbean, and co-guaranteed by IDB and TNC, this innovative transaction is projected to unlock an estimated $50 million in conservation funding over 15 years.

These crucial funds will be directed into the independent Barbados Environmental Sustainability Fund (BESF), with $23 million for direct conservation efforts and $17 million to build a long-term endowment, expected to generate an additional $10 million in returns. Barbados is committed to developing a transparent, science-driven Marine Spatial Plan and establishing the BESF to allocate grants aligned with national conservation and sustainable development priorities, further enhancing its vibrant marine ecosystems with TNC's technical support.