To kill two birds with one stone. Ecuador will reduce the cost of its debt while preserving the environment. The country carried out last week an extraordinary operation that allows it to save $ 1 billion on its debt against the commitment to invest for the protection of the Galapagos, archipelago inscribed on the World Heritage List. Specifically, Ecuador's private creditors agreed to sell bonds (maturing between 2030 and 2040) worth $1.6 billion, compared to only $600 million. The holders of these new debt securities (maturity 2042) have therefore accepted a significant discount of 60%. What's more, the interest rate on the new bonds was traded at an attractive price of 6.95%, well below the current market price of over 10%.
"The guarantee provided by development finance institutions - the Inter-American Development Bank (IDB) and the Development Finance Corporation in the United States - rated 'AAA' by...
This article is for subscribers only. You still have 79% to discover.
Want to read more?
Unblock all items immediately.
TEST FOR 0,99€
Already a subscriber? Log