Swiss Re supports Blue Bond providing $500 million for ocean conservation in Gabon
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The U.S. International Development Finance Corporation (DFC) announced $500 million in political risk insurance supporting a bond for marine conservation in Gabon (Gabon Blue Bond). Working with The Nature Conservancy (TNC), the Government of Gabon, and Bank of America, DFC provided political risk insurance that enabled a $500 million debt conversion for Gabon which is expected to generate $163 million in dedicated marine conservation funding over the next 15 years.
The refinancing 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. It 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.
As part of the agreement, Gabon has committed to develop and implement a comprehensive marine spatial plan, designate 30 percent of its ocean as biodiversity protection zones, and improve the sustainability of the country’s fishing sector. Realising these conservation commitments will increase protection for vulnerable ecosystems, preserve Gabon’s marine biodiversity, and improve the nation’s nature-based resilience.
DFC is sharing 50 percent of the risk with a group of eight private insurers.
Reinsurance for the project is provided by AXA XL, Fidelis MGU, Swiss Re Corporate Solutions, Chubb Global Markets, Sovereign Risk Insurance Ltd, Apollo, Mosaic, and Vantage Risk Specialty Insurance Company.