A&O Shearman represents The Nature Conservancy in creation of the Bahamas Debt Conversion Project for Marine Conservation

The Bahamas project marks the TNC’s fifth Nature Bonds project joining those in Seychelles (2016), Belize (2021), Barbados (2022), and Gabon (2023). Combined, the five projects will support new protections and improved management of nearly 238 million hectares of ocean while allowing for the refinancing of USD1.5 billion of debt.

Funding for the program is being made possible through the refinancing of USD300 million of The Bahamas’ external commercial debt. Standard Chartered provided a loan benefiting from a USD200 million partial credit guarantee from the Inter-American Development Bank, a USD70 million collateralized guarantee from Builders Asset Management and USD30 million in credit insurance from AXA XL. The Bahamas’ Debt Conversion Project for Marine Conservation was announced on November 22, 2024 in a in a press release.

“We were delighted to have the opportunity to assist The Nature Conservancy and the government of The Bahamas in this exciting and vitally important project,” said Cynthia Urda Kassis, Energy, Natural Resources and Infrastructure (ENRI) partner at A&O Shearman. “The Bahamas has been a leader in ocean conservation, and this financing will allow the country to continue its efforts to protect and sustain its precious marine ecosystems.”

The A&O Shearman team that advised The Nature Conservancy was led by energy, natural resources and infrastructure (ENRI) partner Cynthia Urda Kassis, and included and international arbitration partner Christopher Ryan, capital markets of counsel Antonia Stolper , litigation and investigations partner Paula Anderson, ENRI counsel Carter Clements, tax associate Andrew Meiser and law clerks Sarah Ludwick and Nathan Bodger.