Finance Solutions for Nature 2025

Examples of debt-for-nature swaps BOX 8 Ecuador DNS (2023) – $323 million76 Focus: Marine conservation in the Galápagos Islands The world’s largest DNS at the time, Ecuador’s $1.126 billion debt conversion generated $323 million in funding over 18.5 years for the Galápagos Marine Reserve and Reserva Marina Hermandad. Supported by the IDB and US Development Finance Corporation (DFC), the swap offered improved terms, reducing debt service costs while securing long-term marine protection. Gabon DNS (2023) – $125 million77 Focus: Ocean conservation and national biodiversity targets Mainland Africa’s first DNS, Gabon’s $500 million swap involved TNC, Bank of America and private investors. US DFC political risk insurance helped secure Aa2 grading, reducing borrowing costs. The deal redirected $125 million over 15 years to ocean conservation aligned with GBF targets, although it slightly increased gross debt. Barbados DNS (2024) – $125 million78 Focus: Water resilience in a climate-vulnerable nation In one of the world’s driest countries, Barbados used a sovereign SLL to finance water and sewage resilience. Backed by $300 million in guarantees from IDB and the European Investment Bank (EIB), the $125 million transaction links repayments to reclaimed water targets. Missed KPIs trigger penalties paid into an environmental investment trust. Arranged by CIBC Caribbean. 25 Finance Solutions for Nature: Pathways to Returns and Outcomes