NATURAL CAPITAL SOLUTIONS
The Hague, 9th May 2023: OFC announced today the financial close of the largest debt-for-climate conversion in history to protect one of the planet’s most important ecosystems: the Galapagos Islands.
The Galapagos conversion exchanged $1.628 billion in Ecuadorian government bonds for a $656 million impact loan. The transaction will generate savings to the Ecuadorian fiscus of $1.126 billion through 2041.
In return, Ecuador will direct savings of $323 million by 2041 to the conservation of the Galapagos and establish a new endowment fund maturing to $227 million to finance their preservation thereafter.
OFC played a central role in developing the transaction to fruition and contracting and coordinating the various project parties. We led on the commercial and financial structuring and ensured the project met all the required environmental and social safeguards.
The funding from the transaction is a means to an end. The key measure of success of the project will be its ability to deliver the environmental and social impacts it was designed to do. OFC will be responsible for ensuring the project delivers on these impacts throughout the lifetime of the transaction.
We invested $2 million in early-stage development capital with funding provided by our shareholder, Climate Investor Two (CI2) Fund, an innovative blended finance vehicle focused on oceans, water and sanitation. Through a complimentary structure OFC and CI2 expects to avail an additional $5 million per annum for conservation.
The Hague, 18 October 2024: Oceans Finance Company (OFC), a conservation investment and management firm, has won the IJ Global ESG Award 2024 in the “Bond” category for its pioneering role in Ecuador’s Galapagos Marine Bond, part of a groundbreaking debt-for-nature swap in May 2023.
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