Barbados has successfully concluded an innovative debt-for-climate initiative to finance water and sewage projects that are resilient to climate change. With support from international funding partners, the country replaced higher-cost debt with more affordable financing, generating $125 million in fiscal savings. These funds will be directed toward enhancing water resource management and bolstering water and food security.
CIBC Caribbean, acting as the lead arranger, finalised the Sustainability-Linked Loan transaction last week. The $300 million loan was backed by guarantees of $150 million each from the Inter-American Development Bank (IDB) and the European Investment Bank (EIB), the latter through the European Union’s Global Gateway Initiative. The guarantees enabled Barbados to secure a long-tenor, local currency loan under favorable terms, with regional banks contributing to the investment.
