{"id":88194,"date":"2024-11-25T00:00:00","date_gmt":"2024-11-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/11\/25\/the-bahamas-has-unlocked-over-usd-120-mn-in-a-debt-swap\/"},"modified":"2024-11-25T00:00:00","modified_gmt":"2024-11-25T00:00:00","slug":"the-bahamas-has-unlocked-over-usd-120-mn-in-a-debt-swap","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/11\/25\/the-bahamas-has-unlocked-over-usd-120-mn-in-a-debt-swap\/","title":{"rendered":"The Bahamas has unlocked over USD 120 mn in a debt swap"},"content":{"rendered":"

Debt for nature swaps gaining steam in island nations:<\/strong> The Bahamas has unlocked over USD 120 mn in funds for ocean and mangrove conservation and management through a debt swap, Reuters<\/a> reported on Friday. The transaction saw the island nation use a low-interest USD 300 mn loan from Standard Chartered to repurchase Eurobonds and a commercial loan, redirecting interest and principal payment savings towards nature conservation. <\/p>\n

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Made possible by private sector guarantees: <\/strong> The agreement is one of the debt swaps to use private sector guarantees, with impact investor Builders Vision providing a USD 70 mn credit guarantee and Axa XL giving USD 30 mn in insurance. The Inter-American Development Bank also gave a partial guarantee of USD 200 mn to allow Standard Chartered to price its 15-year loan at 4.7%. <\/p>\n

And the Maldives is laying the ground for its debt-for-nature program: <\/strong>The Maldives is working on a debt-for-nature swap that would fund the preservation of coral reefs, mangroves, and sea grass, Reuters<\/a> reported on Thursday, citing climate change, environment, and energy minister Thoriq Ibrahim. The island nation \u2014 which is at risk of being the first to default on Islamic sovereign debt with low foreign currency reserves \u2014 signed an agreement with US conservation group The Nature Conservancy for the project. <\/p>\n

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China tightens solar investment rules: <\/strong>China\u2019s industry ministry has finalized stricter solar PV investment guidelines to rein in major<\/a>overcapacity<\/a>worries<\/a> plaguing the industry, Reuters<\/a> reported last week. Companies will now have to maintain a minimum capital ratio of 30% instead of 20%. The move is intended to incentivize local governments to be more selective with future manufacturing projects based on local resource availability and industrial readiness. The new rules, however, will not be binding in project approvals. <\/p>\n

Not the first move: <\/strong>China earlier reduced tax credits provided for solar manufacturers as part of a series of a national push to address overcapacity. The move is expected to lead to a slight price increase for importers of Chinese solar components, Reuters reported, citing analysts. <\/p>\n

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Fusion tech firm <\/strong>Tokamak <\/strong>Energy closes funding round:<\/strong> UK-based Tokamak<\/a>Energy<\/a> has raised USD 125 mn to accelerate its plans to commercialize fusion energy and expand its high-temperature superconducting (HTS) technology TE Magnetics<\/a>, according to a statement<\/a> published last week. The funding round, co-led by East X Ventures and Lingotto Investment Management, includes new investors such as Furukawa Electric Company and British Patient Capital. <\/p>\n

New frontiers: <\/strong>The investment will support the rapid growth of the superconductors TE Magnetics, which the company says can support innovation through its applications in other industries, including mobility and renewable energy. It will also advance Tokamak Energy's fusion pilot plant design and develop new fusion technologies using its spherical tokamak ST40<\/a>.<\/p>\n

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-<\/strong><\/p>\n