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As part of a debt conversion project, a government works with an ngo and other stakeholders to develop a set of ambitious climate and conservation commitments that are paid for through savings that come from refinancing externally held commercial sovereign debt. Montana board of investments has approved $100 million commitment as part of its 2025 fiscal year plan, according to a meeting document. Discover how debt/equity swaps convert debt into equity to aid companies, especially during bankruptcy
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Learn who benefits and the implications for financial restructuring. Last november, at cop16 in cali, colombia, six of the largest environmental ngos from the usa announced a global coalition to develop debt for nature swaps and unlock more funding for climate and biodiversity. More than us$100 billion of debt in developing countries could be freed up to spend on restoring nature and adapting to climate change, according to new analysis by iied.
Ofc describes the new partnership as an additional and independent outcome of the debt swap
The deal highlights how debt swaps can potentially be springboards for mobilising additional finance for conservation goals, wandrag says. Scaling sovereign debt conversions could be part of the solution and has the potential to unlock up to $100 billion in climate and nature finance, according to coalition estimates.
