Ecuador Announces Its First Debt Conversion to Support Terrestrial and Freshwater Conservation in the Amazon, Supported by TNC’s Nature Bonds Program

Today, the Republic of Ecuador, with the support of The Nature Conservancy (TNC), the U.S. International Development Finance Corporation (DFC), the Inter-American Development Bank (IDB), and Bank of America, announced the financial close of a debt conversion facilitated by TNC’s Nature Bonds Program to advance the Amazon Biocorridor Program. The debt conversion refinanced approximately $1.53 billion of Ecuador’s international bonds, generating over $800 million in net fiscal savings for Ecuador by 2035. The transaction is also expected to secure approximately $460 million to support the 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. This is the first ever land-based Nature Bonds Program effort for TNC and our largest to date. 

As the world becomes increasingly vulnerable to biodiversity loss and climate change, the Amazon Biocorridor Program is part of an innovative, resilient response. The forests, rivers and wetlands of the Amazon region mitigate climate change and provide critical food, freshwater, and cultural, economic and climate benefits to local communities, the people of Ecuador, and beyond. Like the rest of the world, Ecuador faces rising average temperatures, changes in rainfall patterns, and extreme weather events—all of which directly impact human health and livelihoods. 

The Amazon Biocorridor Program, a management model for effectively conserving the Ecuadorian Amazon region, aims to improve the management of 4.6 million hectares of existing protected areas and protect an additional 1.8 million hectares of forests and wetlands. This model will also protect 18,000 kilometers of rivers, bolster climate resilience, and support human well-being. This new debt conversion, the first of its kind in the Amazon region, will provide a sustainable funding stream to support the implementation of the Amazon Biocorridor Program.

“The Government of Ecuador reaffirms its commitment to conserving the Amazon region by implementing innovative financing mechanisms. As part of a responsible fiscal management framework, we have carried out a financing operation that not only alleviates the burden of public debt but also ensures sustainable resources for the development of the BCA. This sustainable financing model exemplifies our leadership in addressing environmental and climate challenges for the benefit of current and future generations. Thanks to the coordinated efforts of an inter-institutional team, that includes IADB, DFC and TNC; with the guidance of Enosis Capital as the Technical Advisor and Financial Structuring Agent of the Republic and the Global Green Growth Institute and Centerview, we have secured credit benefits that link our public finances to concrete actions for the preservation of this invaluable ecosystem,” said Juan Carlos Vega, Ecuador’s Minister of Economy and Finance.  

“The Amazon Biocorridor Program is not simply a strip of territory; it is a comprehensive management model that strategically addresses the major environmental challenges of our time. Through innovative mechanisms in financing and conservation, this program places the Amazon at the center of a transformative vision that not only protects one of the most biodiverse ecosystems on the planet but also ensures the long-term resilience of Ecuador, the Amazon region, and the entire world. The Government of Ecuador, through the Ministry of Environment, Water, and Ecological Transition, is proud to lead an initiative that demonstrates how conservation and innovation can converge to ensure the well-being of our communities and foster truly sustainable economic development,” said Inés Manzano, Minister of Environment for Ecuador. 

This debt conversion was made possible through The Nature Conservancy’s Nature Bonds Program, which combines debt refinancing, ecological and social science, conservation planning and policy to support countries in achieving their conservation and climate goals, close the nature finance gap, and support local communities. This is the sixth project supported by TNC’s Nature Bonds Program, alongside those in Seychelles (2016), Belize (2021), Barbados (2022), Gabon (2023), and The Bahamas (2024), and it is the first ever Nature Bonds project focused on terrestrial and freshwater conservation. Together, the six projects are expected to generate approximately $1 billion in conservation funding and support governments to reach new protection commitments or improved management of nearly 242 million hectares of ocean, land, lakes and wetlands and 18,000 km of rivers, demonstrating how quickly this approach is scaling around the world. 
 
"This joint effort between the Ecuadorian government and TNC is a significant milestone for conservation in the Ecuadorian Amazon,” said Galo Medina, Director of TNC’s Ecuador program. “The Amazon Biocorridor Program will help protect one of the most biodiverse regions on the planet and ensure that conservation benefits reach the people who depend on these ecosystems. This initiative exemplifies how the combination of innovative financial mechanisms, the technical expertise of an organization like TNC, and the leadership of a government committed to Amazonian conservation can drive both environmental sustainability and the well-being of local populations, which are fundamental elements for building a resilient and sustainable future for Ecuador."

The debt conversion is expected to generate $400 million plus an estimated $60 million in endowment returns over time. Of the $400 million ($23.5 million per year over 17 years), $19 million will fund the Amazon Biocorridor Program annually, including TNC’s technical support. An additional $4.5 million annually will capitalize an endowment that is expected to generate approximately $60 million in additional returns for a total projected end value of $137 million by 2041, bringing the total funds for conservation expected to be unlocked to approximately $460 million overall.

Bank of America acted as the sole arranger, bookrunner, coordinator and initial purchaser of the new financing that was used to fund the tender of the pre-existing Ecuadorian sovereign bonds, as well as the sole dealer manager of the tender. DFC provided political risk insurance of $1 billion for the new financing, and IDB issued a $155 million partial credit liquidity guarantee. Enosis Capital acted as Ecuador’s financial structuring and technical advisor.

Most of the conservation funding unlocked by the debt conversion will be disbursed through grants from a new independent conservation trust fund, Fondo del Biocorredor Amazónico, Fondo BCA (Amazon Biocorridor Fund, BCA Fund). The BCA Fund will focus on the Ecuadorian Amazon and be run by a local board of directors, including representatives from the government, Indigenous groups, local communities, academia, and the financial, sustainable development, and production sectors, and TNC. It will follow international standards for conservation trust funds to ensure transparency and accountability, adopting clear procedures for identifying grantees and issuing public reports annually, including independent audit reports. 

“Ecuador is a key U.S. ally and one of DFC’s largest markets worldwide,” said DFC CEO Scott Nathan. “Today’s announcement underscores DFC’s commitment to leveraging innovative financial tools to reduce sovereign debt, strengthen resilience to economic coercion, and raise money for biodiversity. DFC and the United States are proud to have enabled this debt conversion transaction to benefit the Amazon Biocorridor Program.”

“We are happy to support Ecuador’s first-of-its-kind operation in the Amazon to scale up sustainable financing for environmental protection,” said IDB President Ilan Goldfajn. “The Amazon plays a key role in maintaining global environmental balance and is a priority for the IDB, which we promote through our Amazonia Forever program. This type of operation helps our countries advance biodiversity conservation and build resilience to climate change,” he added.

The Amazon Biocorridor Program will support the establishment of new protected areas and the improved management of existing ones. Indigenous Peoples and Nationalities are participating in the co-design of the Amazon Biocorridor Program’s conservation efforts, ensuring they have a role in decisions that impact their territories and well-being. Through participatory planning, the program will combine local knowledge and scientific evidence to guide strategies that enhance ecological connectivity and resilience. The initiative will promote a robust framework of social and environmental safeguards designed to protect cultural diversity and support the well-being of local communities.

The Nature Conservancy has worked in Ecuador for 30 years, helping to protect the natural resources that sustain millions of people in the country through achievable, effective conservation efforts led in cooperation with Indigenous Peoples and Nationalities, local communities, nonprofit and government partners. TNC has consistently worked in coordination with the Ministry of Environment, Water, and Ecological Transition as a strategic partner to strengthen national environmental policy. TNC has also promoted the conservation of Ecuadorian biodiversity through innovative financial mechanisms such as water funds, an initiative that has been shared worldwide based on Ecuador’s experience.

To learn more about the Nature Bonds Program, visit nature.org/naturebonds 

Many supporters made this project possible, including MacKenzie Scott, The Bobolink Foundation, The Fondation Hans Wilsdorf, and The Robertson Foundation.