The Republic of Ecuador has finalized a $1 billion sovereign debt conversion with Bank of America, marking one of the largest transactions of its kind. This initiative aims to refinance approximately $1.53 billion in Ecuador's sovereign debt, resulting in over $800 million in net fiscal savings by 2035. The transaction is expected to unlock $400 million in new cash funding and an estimated $60 million in endowment returns for conservation efforts over the next 17 years.

The funds will support the Amazon Biocorridor Program, which focuses on conserving terrestrial and freshwater ecosystems in the Ecuadorian Amazon. The program was developed with input from The Nature Conservancy (TNC) and Indigenous Peoples and Nationalities, supported by the Inter-American Development Bank (IDB).

Ecuador converted certain external dollar-denominated debts into funding at lower service costs. This marks Ecuador's second debt conversion. Bank of America acted as Sole Structuring Agent for this transaction and as Sole Dealer Manager on a third-party Cash Tender Offer for some outstanding debts.

Juan Carlos Vega, Ecuador’s Minister of Economy and Finance, stated that this financing operation alleviates public debt while ensuring sustainable resources for developing the BCA. Inés Manzano, Minister of Environment for Ecuador, emphasized that the program addresses major environmental challenges through innovative financing mechanisms.

The transaction is expected to channel funds into a new independent conservation trust fund specifically created for transparent administration towards financing conservation activities in the region. Karen Fang from Bank of America noted that this deal would generate cost savings while protecting natural habitats.

Galo Medina from TNC highlighted this joint effort as a significant milestone for conservation in the region. Scott Nathan from DFC expressed pride in enabling this transaction to benefit biodiversity efforts.

Ilan Goldfajn from IDB remarked on supporting Ecuador's operation to scale up sustainable financing for environmental protection through their Amazonia Forever program.

This is Bank of America's second debt conversion transaction and supports its commitment to mobilize $1.5 trillion by 2030 toward sustainable development goals.