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Barbados Swaps $150 Million of Sovereign Debt to Save Sea

  • Island is third country to refinance via so-called blue bonds
  • Nation buys back parts of 6.5% US dollar bonds, 8% local notes
Beach in Bridgetown, Barbados.

Beach in Bridgetown, Barbados.

Photographer: Joe Raedle/Getty Images 

Updated on

Barbados is spinning $150 million of its sovereign bonds into cheaper debt with the help of a US charity, with plans to use the savings to protect its ocean.

The island nation, known for its white-sand beaches, has struck a deal to buy back a portion of its $531 million bond due in 2029, replacing it with lower-cost debt that comes with repayment guarantees from The Nature Conservancy and the Inter-American Development Bank. As part of the deal, the nation is also buying back a portion of its 8% local-currency notes due 2043.