El Salvador Pioneers River Conservation with Debt-for-Nature Conversion
Deal News | Jan 30, 2025 | White & Case
In a recent transaction, El Salvador has engaged in the world's largest debt-for-nature conversion aimed at conserving its rivers, with legal guidance from White & Case. The advisory team, led by partners Olga Fedosova, Ian Clark, Prat Vallabhaneni, and associate Isabella Bellera Landa, shared their insights on the bespoke nature of the deal, the challenges faced, and future prospects for such transactions. White & Case has been a longstanding advisor to El Salvador, which is a key element that contributed to their securing of the mandate. The transaction includes sophisticated legal mechanisms to incentivize compliance with conservation commitments, featuring monetary penalties for defaulting on or abandoning those commitments. The team at White & Case expects the concept of debt-for-nature swaps to gain wider acceptance and support a broader range of initiatives, extending beyond Central America.
Sectors
- Legal Advisory
- Environmental Conservation
- Sovereign Debt Management
Geography
- El Salvador – The primary focus of the article is on El Salvador as the country executing the world's largest debt-for-nature conversion.
- Central America – The region mentioned in the outlook on the future of debt-for-nature swaps, implying broader applications across Central America.
Industry
- Legal Advisory – The article discusses the role of White & Case as a legal advisor in structuring and executing the debt-for-nature conversion for El Salvador.
- Environmental Conservation – The article centers around a debt-for-nature conversion deal aimed at conserving rivers in El Salvador, highlighting the convergence of finance and environmental conservation.
- Sovereign Debt Management – The deal represents a financial strategy involving the restructuring of national debt in order to achieve environmental objectives, pertinent to sovereign debt management.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| El Salvador | Target | Government | The El Salvador government is the entity engaging in the debt-for-nature swap transaction for river conservation. |
| White & Case | Legal Advisor | Company | A law firm providing legal advisory services for the debt-for-nature conversion transaction. |