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 Galapagos Islands, renowned worldwide for their unparalleled biodiversity and unique ecosystems, face mounting environmental and human-induced threats. In response to these pressing challenges, the Charles Darwin Foundation (“CDF”) and Oceans Finance Company (“OFC”) are delighted to announce a strategic partnership
READ MOREThe Hague, 9th May 2023: Climate Fund Managers (CFM), the leading climate-centric investment firm, today announced the financial close of a new debt-for-climate conversion via its marine ecosystem venture, Oceans Finance Company (OFC), that will protect one of the planet’s most important ecosystems: the Galapagos Islands.
READ MOREIn May, the Republic of Ecuador completed the world’s largest debt conversion for nature. Credit Suisse, as sole structurer and arranger underwrote and placed the 18.5-year $656 million bond to provide funding for the protection of the Galápagos Islands and its marine ecosystem.
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