Belize Wins First Step Toward an Ocean-Friendly Restructuring

Belize struck an agreement in principle with a group of bondholders to buy back its debt at a discount -- but with an unusual, ocean-friendly twist.

Under the accord announced Friday, the Caribbean nation would purchase, redeem and cancel all of its outstanding dollar bonds, the nation’s Ministry of Finance and bondholder group said in statements. Belize has about $530 million of its so-called superbond outstanding, according to data compiled by Bloomberg.

What is unusual is the financing. The government plans to use money provided by the Nature Conservancy’s blue bond financing program,which will use private capital to help ...