In landmark deal, Barbados restructures debt through a debt-for-nature swap which aims to protect 30% of the island’s coastal waters

In what Prime Minister Mia Mottley has described as a game-changing transaction, Barbados has announced a $150m debt-for-nature swap. Managed by Credit Suisse and CIBC FirstCaribbean, the deal will free up about US$50 million in the next 15 years by buying back a portion of its US$531 million bond due in 2029. They are replacing that debt, plus a portion of its 8% local-currency notes due 2042, with lower-cost debt with repayment guarantees from TNC and IDB. The money will be used to protect the island’s coral reefs and other marine life with the goal of protecting up to 30% of its coastal waters.

Source: Bloomberg