As interest in debt conversions for nature continues to grow globally, so does the need for detailed case studies that help sovereigns, financial stakeholders, and conservation practitioners understand how these structured transactions come together.
The Nature Conservancy (TNC) has pioneered a sovereign debt refinancing model, under the Nature Bonds Program, that helps countries unlock sustainable long-term financing for national conservation and climate priorities while advancing their financial, economic, and development goals. Since launching its Nature Bonds Program, TNC has successfully closed six Nature Bonds transactions – unlocking ~$1 billion for conservation, communities and climate, raising more than $2 billion of new financing, and refinancing more than $3 billion of existing debt.
Over the past decade, TNC has built an interdisciplinary team of dedicated finance, legal, science, safeguards, and trust fund experts to advance this growing asset class. Drawing on TNC’s deep technical expertise in originating, structuring, negotiating, and executing debt conversions, we have published a new case study on The Bahamas Debt Conversion Project for Marine Conservation. The publication provides an in-depth overview of the financial structure and credit enhancement package, how funding was unlocked, and the role of the conservation trust fund.
The innovative project refinanced $300 million of The Bahamas’ external sovereign debt, creating $132 million of funding to improve ocean conservation and management over 15 years. Building on earlier Nature Bonds transactions, this project introduced a first-of-its-kind credit enhancement package that combined private guarantees and insurance with a public-sector anchor guarantee. In this instance, in collaboration with TNC, the IDB played a pivotal role in de-risking the transaction by crowding in a co-guarantee from Builder’s Vision and co-insurance from AXA XL.
Read the case study to dive deeper!
With thanks to all who helped make this possible, including Government of The Bahamas, Inter-American Development Bank, Builders Vision, AXA XL, Standard Chartered, Bahamas Protected Areas Fund (BPAF), Bahamas National Trust, and many others. And congrats to the many colleagues across TNC that worked so hard to achieve this win for nature and for The Bahamas.
Learn more about the TNC Nature Bonds Program and watch out for more news as our project pipeline continues to grow.
For media inquiries:
Rachel Winters
Deputy Director, Global Media
The Nature Conservancy
Email: rwinters@tnc.org