NH-SFO Second-Loss - Barbados Policy Based Guarantee (MIGA-15791)

Countries
  • Barbados
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Barbados
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 140.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 140.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 140.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Nov 5, 2026

Disclosed by Bank Jun 4, 2026

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to MIGA, the Project consists of one or more 20-year commercial loan(s) of up to US$184 million equivalent to the Government of Barbados (GoB), acting through its Ministry of Finance. The loan(s) will be denominated in Barbadian dollars and form part of the IBRD Development Policy Operation (DPO) supporting reforms (Prior Actions) the GoB has already completed.  The reform program aimed at strengthening the structural foundations of Barbados' economy — modernizing the systems that underpin economic activity while expanding the human capital and investment base needed to sustain inclusive growth, job creation, and regional integration. 

The commercial loan(s) is expected to benefit from a combination of a (i) US$110 million IBRD Policy-Based Guarantee, provided on a first-loss basis; and (ii) MIGA Non-Honoring of Sovereign Financial Obligations (NH-SFO) guarantee(s) of around US$140 million, provided on a second-loss basis. The guarantees will cover 95% of GoB’s scheduled payment obligations under the loan(s). The loans will also include a Climate Resilient and Pandemic Debt Clause. After a qualifying natural disaster or pandemic, this clause allows the GoB to defer scheduled principal payments for up to two years, preserving liquidity when it is most needed. 

The WBG-supported tranche sits alongside a parallel commercial financing of approximately US$425 million equivalent that is guaranteed by the Inter-American Development Bank (IDB), the Development Bank of Latin America (CAF) and the Caribbean Development Bank (CDB). Together, the two tranches would support up to US$610 million equivalent of commercial lending to Barbados. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure

 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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