In a Q&A with IFLR, White & Case Project Development and Finance partners Suzanne Perry and Martin Menski commented on their pro bono representation of Conservation International on a landmark US$35 million debt-for-nature swap to protect Indonesia's coral reefs.
Commenting on the legally innovative aspects of the deal, Menski said, "The debt swap basically produces a grant resource that is deployed through a conservation agreement. In this case, it was important for that agreement to allow for uses of funds appropriate to coral reefs." He added "this has parallels with some of the work we do for agencies that finance sustainable development by on-lending through financial intermediaries."
Perry also noted that, "We'd characterize the innovations as opportunities more than challenges." She added, "There was a need to look carefully at the permitted uses of the deployed funds to include not just pure conservation but also to promote sustainable use by persons whose livelihoods are dependent on coral reef systems and to empower local NGO representatives."
On the significance of the deal, Perry said, "These are among the most biodiverse coral reefs in the world, underscoring the commitments of both the US and Indonesia to protect fragile and precious coral reefs."
Read the full article here (paywall).
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