Photo: Beverly Wade, Director of the Blue Bonds and Finance Permanence Unit, receives the award on behalf of Belize
BELIZE CITY, Wed. Dec. 7, 2022
The Blue Bonds for Ocean Conservation, a financing arrangement between Belize and The Nature Conservancy (TNC) that hinges on a commitment by the country to marine conservation, has been lauded as the most innovative debt-for-marine conservation deal worldwide to date. The deal marked a historic restructuring of the country’s debt, through a buyback of the billion-dollar “Superbond” at a discount of over 40%, which was possible through financing provided by TNC at interest rates and with repayment terms that are more favorable than those that accompanied the Superbond loan. It required the country, however, to commit to the creation of facilities for investment by the government in marine conservation and the preservation of a significant portion of our marine space. So far, the Government of Belize has received three awards for the historic restructuring. Today, they announced the third, which was received by the Director of the Blue Bonds and Finance Permanence Unit, Beverly Wade, in Miami at the end of November.
“The Government of Belize is the recipient of the prestigious award for Sovereign Restructuring Deal of the Year at the Bonds & Loans Latin America & the Caribbean Awards,” a release from GoB states. Since 2015 the Bonds & Loans Latin America & the Caribbean Awards has recognized innovative and ground-breaking financial deals and has been acclaimed as the world’s leading Pan-Latin America and Caribbean debt event.
Belize was selected after a close examination of the deal size, tenor, structure, and distribution. Also analyzed as a part of the decision to select Belize as the recipient of this year’s award was the background of the borrowers (Belize), with extra credit being given for the high-quality execution of the deal, the accessing of new pools of liquidity, innovative structuring, and the opening of new markets.
Belize’s Blue Bond is inextricably tied to climate mitigation and conservation efforts, with a commitment being made by the country to protect up to 30% of our ocean prior to the signing of the deal.
The Blue Bonds in Belize is basically a pilot initiative that supports a plan to provide countries across the Caribbean, Africa, Latin America, and the Asia-Pacific regions with a debt restructuring option to help ensure the protection of more of the world’s oceans.
“Belize previously received awards for Innovation – Bond Structure (Sustainability Bond) and Sustainability Bond of the Year – Sovereign from Environmental Finance,” the release from GOB states.