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Climate Fund Managers announces largest debt-for-climate conversion in history

12 May 2023 | Sustainable Investing

Sanlam Investments is proud to announce that Climate Fund Managers (CFM), a leading climate-centric investment firm co-owned by Sanlam Infraworks, announced the close of their first debt-for-climate conversion. This landmark transaction, which CFM facilitated through its marine ecosystem venture, Oceans Finance Company (OFC), will protect one of the planet’s most important ecosystems – the Galapagos Islands.

The Galapagos conversion, which is the largest in history, exchanged $1.628 billion in Ecuadorian government bonds for a $656 million impact loan. Debt-for-climate conversions are innovative finance mechanisms that exchange a portion of government debt at more favourable terms, with savings spent on climate-positive action.

The funding will help physically protect the Hermandad Marine Reserve through patrolling, drone monitoring and satellite imagery. Targeted funding will support community development initiatives including programmes to support sustainable livelihoods, women’s economic empowerment and improved access to sanitation and waste management infrastructure, which will ultimately help to reduce the harmful impact of pollution on the marine environment.

We are proud of the role CFM have played in this milestone transaction and will continue to support them to ensure their impactful role in investing sustainably.

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