Hunton Andrews Kurth Represents US International Development Finance Corporation on $500 Million in Political Risk Insurance for First Debt Conversion for Marine Conservation in Central Africa

Hunton Andrews Kurth LLP advised the U.S. International Development Finance Corporation (DFC) in connection with DFC’s support for a $500 million bond for marine conservation (Gabon Blue Bond) in Gabon with The Nature Conservancy (TNC), the Government of Gabon, and Bank of America. 

The issuance of the Gabon Blue Bond closed August 14, 2023, and was used to finance a debt conversion that will unlock $5 million each year over the next 15 years for conservation action and create an endowment expected to grow to approximately $88 million by 2038 to fund conservation in Gabon in the future.

Made possible through $500 million in political risk insurance provided by DFC, the debt conversion will improve Gabon’s debt profile, while simultaneously creating a dedicated funding stream in support of the country’s commitment to biodiversity protection and nature-based resilience through management of marine protected areas. Projects funded as a result of the Gabon Blue Bond will support marine protection and management, advance sustainable fisheries, strengthen climate resilience, and develop a sustainable blue economy for the local community.

“We were proud to represent DFC in this first-of-its-kind financing in Central Africa, having supported DFC on similar efforts in Central and South America,” said Jamie Head, partner and head of Hunton Andrews Kurth’s agency finance practice. “It was truly an honor to assist DFC’s committed public servants in this enormous achievement to protect Gabon’s marine ecosystem.”

The Hunton Andrews Kurth team representing DFC on these debt-for-nature swaps is led by Head with assistance from partners Mayme Donohue and Andrej Micovic, counsel Patrick McDermott, and associates Chloe Kwon and Sevren Gourley.