In addition, last week, the United States allocated $150 million for the expansion and modernization of the shipping container port of Puerto Bolívar in El Oro.
Quito, May 9, 2023. The Government of the United States, through the U.S. International Development Finance Corporation (DFC) in cooperation with the Inter-American Development Bank, Credit Suisse, Oceans Finance Company, and Pew Bertarelli Ocean Legacy, announced today the financial closing of a $656 million Galapagos marine conservation-linked bond, the Bono Marino Galapagos, arranged and structured by Credit Suisse. This debt swap is the largest exchange for environmental conservation and the protection of biodiversity in the world.
This announcement in Ecuador was made at a ceremony attended by Michael J. Fitzpatrick, U.S. Ambassador to Ecuador; Luis Lara, Minister of Defense; Julio José Prado, Minister of Production; Pablo Arosemena, Minister of Finance; Gustavo Manrique, Minister of Foreign Relations; José Antonio Dávalos, Minister of Environment. “We are pleased to support this permanent endowment aimed at conserving the Galapagos marine ecosystem through the Galapagos Life Fund,” said Ambassador Fitzpatrick.
Through this debt conversion, Ecuador will obtain more than one billion dollars in lifetime savings through the reduction of sovereign debt service costs. The debt conversion is one of the latest agreements that our countries have reached together. Since 2019, the DFC has mobilized programs in Ecuador in the amount of more than one billion dollars.
Last week, the DFC announced that it has committed a $150 million loan to Yilport Terminal Operations S.A. to finance the expansion and modernization of the shipping container port of Puerto Bolívar, in El Oro, in order to make it the largest maritime container terminal in Latin America. The project will provide significant long-term benefits to the country’s population and economy. The expansion of the port is expected to create up to 1,250 direct and indirect jobs; catalyze up to $750 million of foreign direct investment; generate more than $100 million in revenue transfers to the local municipality; improve the trade balance of Ecuador; and strengthen the country’s capacities in the fight against drug trafficking and smuggling.
For the United States, promoting the reactivation and economic development of Ecuador and caring for the environment are high priorities. The DFC’s collaboration is another example of the United States’ commitment to our relationship with Ecuador.
For more information on these DFC announcements, click on the press releases:
Financial Close Reached in Largest Debt Conversion for Marine Conservation to Protect the Galápagos.
DFC Commits $150 Million to Yilport Terminal to Expand and Upgrade Port Infrastructure in Ecuador.