Chubb Supports Debt Restructuring For Nature Project In Belize

Chubb supports the participation of the United States International Development Finance Corporation (DFC) in a landmark debt restructuring and ocean conservation project in Belize.

Chubb Global Markets and Sovereign Risk Insurance, along with other private insurers, provided $ 300 million in reinsurance to DFC as part of an innovative political risk insurance deal designed to help Belize reduce its debt public and to finance marine protection.

The insured transaction, a $ 364 million loan structured and arranged by The Nature Conservancy (TNC) and Credit Suisse, will allow the country to reduce its debt burden by approximately $ 250 million and generate approximately $ 180 million for marine conservation over 20 years.

DFC provided approximately $ 610 million of political risk insurance (covering the principal and interest of the loan) to support the transaction, thereby ensuring that the loan received an investment grade rating.

Due to the large size of DFC’s exposure, the backing of private political risk reinsurance was a critical part of the transaction.

Gallagher Re

DFC’s support for this project represents one of the most innovative examples of climate finance and a model for the future, as it reduces Belize’s indebtedness, generates investments in the protection of the sea and biodiversity and promotes climate resilience in the country’s “blue” economy.

Through this loan, Belize is able to redeem and repay a significant portion of its external commercial debt, create significant annual cash flows for marine conservation through 2040, and establish an endowment to finance conservation. marine for future generations.

This transaction represents the largest marine conservation-focused debt restructuring in the world to date and is the second transaction for TNC’s “Blue Bonds for Ocean Conservation” program.

Price Lowenstein, Chairman of Sovereign Risk Insurance, said: “The private political risk insurance market is delighted that we were able to support DFC in such a meaningful way in this groundbreaking transaction.

“This is a great example of a public-private partnership that can serve as a model for future ‘blue’ debt financing. Not only are we helping make a remarkable conservation project possible, but we also support sustainable economic development and community resilience through critical debt relief. “

User-friendly printing, PDF and email

Comments are closed.