NASSAU, BAHAMAS – Prime Minister Philip Davis announced that The Bahamas’ Debt Conversion Project for Marine Conservation has received international recognition, being awarded the prestigious ‘ESG Deal of the Year’ at the Latin America Bond Awards 2025.
This accolade comes as the country is also receiving positive economic outlooks from major international financial institutions, with the International Monetary Fund (IMF) upgrading The Bahamas’ growth projections, Moody’s raising the country’s outlook to positive for the first time in nearly 20 years, and Fitch Ratings endorsing the credibility of the government’s fiscal policy framework.
Davis highlighted these developments in his address to the House of Assembly, emphasizing the growing confidence in The Bahamas’ fiscal stability, economic recovery, and commitment to environmental sustainability.
“The Bahamas Debt Conversion Project for Marine Conservation has been recognized by international news and data service GlobalCapital as the ‘ESG Deal of the Year’ at the Latin America Bond Awards 2025, an awards programme celebrating the leading names in the Latin American debt capital markets. This award is an industry recognition of The Bahamas’ leadership in designing innovative financing solutions to further climate resilience objectives, and honours the country’s dedication to both ocean conservation and sound fiscal management,” Davis stated.
The project utilized an innovative credit-enhancement structure, supported by the Inter-American Development Bank, Builders Vision, and AXA XL, securing USD $300 million in long-term external liquidity at a highly favorable fixed coupon of 4.700 percent. These funds were used to repurchase and retire existing external commercial debt, creating savings over the life of the new financing.
Expected to generate USD $124 million over a 15-year period, the transaction stands as the largest marine conservation funding program in the country’s history. The funding will support the preservation of The Bahamas’ critical marine ecosystems and enhance climate resilience, safeguarding vital resources for the nation’s economy, livelihoods, and cultural heritage.
The initiative, completed in November 2024, represents a major milestone in The Bahamas’ debt management strategy, blending finance to reduce debt service costs while advancing the country’s ambitious sustainability goals.
Davis expressed gratitude for the efforts of those involved in negotiating the transaction, including the Department of Marine Resources, Ministries of Finance, Environment & Natural Resources, The Bahamas National Trust, and the Bahamas Protected Areas Fund. He emphasized the impact of the program on local communities, particularly the family islands, noting that it will generate job opportunities and establish community-driven resource management groups.
“As the world recognizes this bold step, we look forward to the rollout of this work into the communities and settlements of the family islands. This program will create job opportunities and establish community-driven resource management groups. With this program, the future of our marine resources and its management can now be guided with the assistance of the people who will benefit most from its use,” Davis said.
Davis also highlighted The Bahamas’ improved economic outlook in the International Monetary Fund’s (IMF) April 2025 World Economic Outlook, which raised growth projections for 2025 from 1.7 percent to 1.8 percent and for 2026 from 1.6 percent to 1.7 percent.
“In a world where many nations have seen their forecasts downgraded, The Bahamas stands apart. We are among the few countries that have earned an upward revision. This is a marker not only of international recognition — but of the clear-eyed, hard-nosed, deliberate economic management we’ve insisted upon,” said Davis.
He also celebrated the positive outlook upgrade from Moody’s — the first in nearly 20 years — recognizing that The Bahamas’ debt is now falling, the deficit is under control, and that the government’s reforms are yielding results. Fitch Ratings also endorsed the credibility of the country’s fiscal policy framework in its inaugural assessment.
“Moody’s — an agency not known for flattery — recently upgraded The Bahamas’ outlook from stable to positive for the first time in nearly 20 years. Their statement recognized that our debt is now falling. That our deficit is under control. That our reforms are yielding results. Fitch Ratings, in its inaugural assessment, provided a detailed review of our economic architecture and underscored the credibility of our fiscal policy framework,” Davis noted.
Davis further emphasized the growing confidence in The Bahamas, reflected in the expansion of capital markets, the strength of the tourism sector, and the surge in construction across the country. He concluded by affirming that despite global economic challenges, The Bahamas is now on a path of growth and stability, with international institutions recognizing the country’s efforts.
“Growing confidence is not limited to the corridors of the IMF or the credit rating halls of Moody’s. It is echoed in the investment decisions being made by businesses, both domestic and international. It is reflected in the fact that our capital markets are expanding, that tourism remains strong, and that construction across the archipelago is surging,” Davis said.
