Barbados completed a BBD593 million loan ($300 million) sustainability-linked loan (SLL) for blue conservation.

Proceeds from the transaction were used to buy back expensive domestic bonds, which generated $125 million in fiscal savings to be applied towards climate resilient infrastructure.

The SLL forms part of a debt for climate swap towards blue conservation, with the transaction savings being applied to enhance water resource management and increase water and food security. Barbados is a water-scarce country, with an average per capita water availability four times less than the global average.

One project the funds will be used for is to build a $60 million sewage treatment plant and a seven-megawatt solar energy system with battery storage, as well as Barbados Water Authority enhancements such as pipeline installations, and water infrastructure upgrades to build resilience.

CIBC Caribbean, Scotiabank and RBC provided the loan to Barbados, with the Inter-American Development Bank (IDB) and the European Investment Bank (EIB) providing credit support.