Global law firm Clifford Chance advised CIBC Caribbean as mandated lead arranger, sustainability structuring agent and lead lender (as well as Scotiabank and RBC as co-lenders) on a debt for climate swap focussed on climate resilience. The debt swap involved an approximately BBD 593 million sustainability linked loan for the Government of Barbados, arranged by CIBC Caribbean and guaranteed by The Inter-American Development Bank and the European Investment Bank.

The sustainability linked loan will be used to buy-back government debt, with this debt-for-climate conversion achieving US$125 million in fiscal savings for Barbados. Combined with a separate GCF grant to Barbados of US$40 million, the transaction will mobilise US$165 million in new resilience investments for Barbados, focused on water infrastructure, food security and environmental protection to help the Caribbean island adapt to the damaging effects of climate change.

Clifford Chance has an established track record of advising on complex, innovative, and first of a kind green, blue and blended finance transactions for a range of client types including banks, multilateral development banks and governments. Recent similar transactions include debt for nature conversions in The Bahamas, El Salvador and the Republic of Ecuador.

Sovereign debt partner Deborah Zandstra led the team, assisted by senior associate Azam Taiyeb, associate Caroline Smyth and trainee Keith Minami.