Hogan Lovells advises Republic of Ecuador on historic "debt-for-nature" swap to fund conservation projects in the Ecuadorian Amazon

The transaction consisted of a US$1 billion 144A/Reg S offering of Biocorredor Amazónico Bonds by Amazon Conservation DAC, a related US$1 billion loan to the Republic and a repurchase of approximately US$1.53 billion of Ecuador’s international bonds, which is expected to generate over US$800 million in net fiscal savings for Ecuador by 2035.

The debt conversion was also supported by The Nature Conservancy (TNC), the U.S. International Development Finance Corporation (DFC), the Inter-American Development Bank (IDB), and Bank of America.

The transaction is also expected to secure approximately US$460 million over the next 17 years to support the Republic’s Amazon Biocorridor Program (Programa Biocorredor Amazónico, BCA) for the conservation of terrestrial and freshwater ecosystems in the Ecuadorian Amazon—representing the largest amount raised for conservation in any debt conversion.

More information on the transaction can be found here.

The Hogan Lovells deal team was led by partners Evan Koster (Capital Markets, New York), Bruno Ciuffetelli (Infrastructure, Energy, Resources and Projects, Houston), Ben Garcia (Capital Markets, New York), and Miami Office Managing Partner Jorge Diaz-Silveira (Infrastructure, Energy, Resources and Projects), with support from counsel Meredith Hines (Capital Markets, New York), senior associate Juan D. Moreno (Capital Markets, New York), International Consultant Pedro Martínez Rubí (Infrastructure, Energy, Resources and Projects, Miami), associate Mariana Avendano (M&A, Houston), and law clerk Pablo Castiella (Capital Markets, Philadelphia).