More emerging market sovereigns pursue debt-for-nature swaps to reduce debt burdens

Thorsten Nestmann, a Senior Vice President and Group Credit Officer, and Christopher Bredholt, a Vice President focusing on public projects, delve into the rise of debt-for-nature swaps among emerging market sovereigns. They discuss how these swaps help reduce debt burdens while fostering climate initiatives. Insights into their credit implications reveal opportunities for enhanced ratings and sustainable development. The conversation highlights real-world examples from nations like Gabon and Ecuador, spotlighting both the risks and transformative potential of these innovative financial strategies.