Bank Finances Sustainability Linked Debt Conversion for Barbados Government

Bank Finances Sustainability Linked Debt Conversion for Barbados Government

Zurich, Switzerland – April 19, 2021. Credit Suisse in the Swiss financial center of Zurich city. Credit Suisse is the second-largest Swiss bank. (Shutterstock)

CIBC FirstCaribbean and Credit Suisse as joint lead arrangers have successfully closed the recently announced USD146.5 million Government of Barbados Dual Currency Facility (USD Blue Bond /BBD Blue Loan). CIBC FirstCaribbean acted as Domestic Lead Arranger and sole Lender for the BBD146.52 million (US73.26 million Blue Loan portion of the transaction and Credit Suisse acted as Global Lead Arranger, underwriter and bookrunner for the USD73.26 million Blue Bond portion of the transaction.

The Inter-American Development Bank (IDB) and The Nature Conservancy (TNC) acted as co-guarantors for the transaction. Credit Suisse and CIBC Capital Markets partnered as dealer managers for the buyback of the USD 2029 bonds. Additionally, IDB is providing sustainability advisory services and TNC is providing conservation advisory services to Barbados.

The transaction takes the form of a debt conversion that will unlock significant funding for marine conservation over the next 15 years in Barbados.

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The debt conversion, conducted by Barbados, is expected to provide USD40-50 million in funding for marine conservation and other environmental and sustainable development projects over the next 15 years. As part of the debt conversion, Barbados committed to protect and effectively manage up to 30% of the nation’s ocean, specifically the Exclusive Economic Zone and Territorial Sea, an area of more than 55k square km.

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