Barbados Completes $125 Million Debt Swap for Climate Resilience

Barbados has successfully completed a debt swap designed to generate $125 million in savings that it can use to make its water and sewage systems more resilient to climate change.

A unit of the Canadian Imperial Bank of Commerce arranged a sustainability-linked loan, or SLL, backed by $300 million in guarantees from the European Investment Bank and the Inter-American Development Bank, the Washington-based multilateral lender said in statement on its website on Monday. The proceeds of the deal are being used to replace some of the Caribbean island’s most expensive debt.

The transaction will allow Barbados to turn an ...