AXA XL, a division of global insurer AXA, is offering $30m in insurance to support the Bahamas conservation debt swap.  

It will see AXA XL’s Political Risk, Credit & Bond team offering credit insurance protection for the Government of the Bahamas. 

This initiative is part of the Nature Conservancy’s Nature Bonds Programme, announced on 22 November 2024.  

The Nature Conservancy’s Nature Bonds projects are collaborative efforts between governments and multiple organisations including development finance institutions, commercial banks, private insurance companies and NGOs.  

The Bahamas Debt Conversion Project for Marine Conservation brings together partners such as the Inter-American Development Bank (IDB), the Nature Conservancy, Standard Chartered Bank, AXA XL and Builders Vision, the impact platform of investor and philanthropist Lukas Walton. 

The 15-year project involves a $300m loan from Standard Chartered Bank to the Bahamas for repurchasing and retiring approximately $275m of sovereign debt.  

It will unlock around $124m in new funding for marine conservation over the next 15 years, without increasing national debt.  

The financial protection package includes a $200m partial credit guarantee from the IDB, a $70m collateralised guarantee from Builders Vision and AXA XL’s $30m credit insurance. 

Additionally, a conservation agreement has been established between the Bahamian Government, the Nature Conservancy and the Bahamas Protected Areas Fund to oversee the project’s administration and conservation commitments.  

The agreement will also set up a conservation fund endowment, projected to reach $20m by 2039, ensuring the continuation of marine conservation efforts beyond the 15-year term of the project. 

Meanwhile, last month, AXA XL launched a cyber insurance endorsement in the US to mitigate rising cyber risks in the construction industry.