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Ecuador Deal for Galapagos Conservation
May 17 , 2023
431 days
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- Ecuador has committed to spending millions of dollars annually for 20 years to protect one of the world’s most precious ecosystems.
- Credit Suisse has announced buying Ecuadorian bonds worth $1.6 billion (€1.45 billion) in a debt-for-nature swap that cost the Swiss bank just $644 million.
- The bonds were trading well below face value as investors considered non-repayment to be likely.
- Effectively, Ecuador has now bought its own debt back at a knock-down price via a fresh loan from Credit Suisse.
- And in return, Ecuador’s government had pledged to spend about $18 million annually for two decades on conservation in the Galapagos Islands.
- Credit Suisse will pay between 53.25% and 35.5% of the issue price for the 2030, 2035 and 2040 bonds.
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