Standard Chartered has announced the launch of its inaugural debt conversion for nature (also known as, ‘debt-for-sustainability swaps’), ‘The Bahamas Debt Conversion Project for Marine Conservation’.
Marisa Drew, Chief Sustainability Officer at Standard Chartered, has announced in partnership with The Government of The Bahamas, Inter-American Development Bank, The Nature Conservancy, Builders Vision, AXA XL and several other partners, an innovative $124 million debt conversion project to fund marine conservation efforts in The Bahamas over the next 15 years.
This transaction is innovative for many reasons, not least because this is the first time a family office, Builders Vision, has played a significant role in a sovereign debt conversion by providing an important component of the transaction’s credit enhancement package.
Key Highlights:
- First-of-its-kind Partnership: Builders Vision, a family office, played a pivotal role by contributing to the credit enhancement structure of the deal—a first for sovereign debt conversions.
- Innovative Conservation Financing: This marks a significant step in leveraging sovereign debt restructuring to address urgent environmental priorities.
- Scalable Model: The transaction demonstrates efficiencies that pave the way for replicating and scaling similar projects in other regions.
Standard Chartered is applying an innovative mindset to unlock capital where it isn’t yet flowing at scale.
This initiative exemplifies the power of collaborative financing to address environmental challenges, setting a precedent for sustainable development through innovative financial solutions.
This is a landmark project! 🌍 #sustainablefinance #standardchartered #thebahamas #greenfinance #debtfornature
