The Bahamas announced Friday that it will refinance $300 million of its external debt to free up more than $120 million for marine conservation projects and climate change mitigation.

It is the fifth such debt-for-nature swap in the world, with the Bahamian government signing the deal with The Nature Conservancy, the Inter-American Development Bank and other financial partners.

"We see this project not just supporting the biodiversity and climate objectives of the country, but ultimately the economy and livelihoods of many, many folks," Shenique Albury-Smith, the Bahamas-based deputy director for The Nature Conservancy, told The Associated Press.

The deal involves buying back the existing debt via a new loan by Standard Chartered with reduced interest rates, a move expected to free up some $124 million in funding. That money will be used for marine conservation projects for the next 15 years. An endowment fund also will be created to secure financing for the projects after the 15 years are up. Overall, the Bahamas holds some $5.7 billion in external debt.