Hunton Andrews Kurth Represents US Global Development Finance Corporation on $656 Million in Political Risk Insurance for Largest Debt Conversion for Marine Conservation to Protect the Galápagos
Hunton Andrews Kurth LLP advised the U.S. International Development Finance Corporation (DFC) on a $656 million Galápagos marine conservation-linked bond with the Government of Ecuador, Inter-American Development Bank (IDB), Credit Suisse, Oceans Finance Company (OFC), and the Pew Bertarelli Ocean Legacy. On May 9, 2023, Ecuador converted $1.628 billion of international bonds into a $656 million loan using the Galápagos Marine Bond.
James W. Head, Partner
The debt conversion, made possible by DFC’s $656 million political risk insurance, will save Ecuador over $1.126 billion in lifetime debt service costs. It will create $323 million for marine conservation in the Galápagos Islands over the following 18.5 years, with $12.05 million of new financing annually and $5.41 million to fund the Galapagos Life Fund (GLF) endowment. By 2041, the endowment will fund marine conservation programmes for the GLF. Research, sustainable fisheries, climate resilience, and the creation of a sustainable blue economy by Ecuadorian organisations will also be supported. The loan conversion and endowment are estimated to raise more than $450 million for Galápagos marine conservation.
Mayme Beth F. Donohue, Partner
“We were proud to represent DFC in the largest debt conversion for marine conservation to date,” said Jamie Head, partner and head of Hunton Andrews Kurth’s agency finance practice. “It was truly an honor to assist DFC’s committed public servants in this enormous achievement to protect the Galápagos Islands and its ecosystem.”
Hunton Andrews Kurth represented DFC alongside Head, partners Mayme Donohue and Jay Range (retired), counsel Patrick McDermott, and associates Chloe Kwon and Ian Hutter.
Patrick M. McDermott, Counsel
For detailed information, as well as the picture copyright, please see the law firm’s original article here: Hunton Andrews Kurth Represents US International Development Finance Corporation on $656 Million in Political Risk Insurance for Largest Debt Conversion for Marine Conservation to Protect the Galápagos.