Velliv contributes to the conservation of the Galápagos Islands marine environment and biodiversity
Velliv contributes to the conservation of the Galápagos Islands' marine environment and biodiversity
Investments that make a difference
The transaction marks the world's largest "debt-for-nature conversation", focused on allocating capital towards marine life biodiversity and ocean conservation, economic stimulus to the Galapagueño community, as well as improving debt sustainability for the Republic of Ecuador.
A natual laboratory
The Galápagos archipelago, also known as the "living laboratory of evolution", is famous for the world's greatest level of endemic species (species not found elsewhere on the planet) which were studied by Charles Darwin in the 1830s. The 19 remote Pacific volcanic islands refuge to an estimated 3,000 marine species including green sea turtles, swordfish, manta rays, hammerhead sharks, whale sharks, humpback whales, dolphins, sea lions, tropical fishes, and not least the distinguishable marine iguanas.
We are truly delighted to contribute financing to protect one of the most unique wildlife and ecosystems in the world. This investment not only helps to secure the marine environment and biodiversity of the Galápagos Islands, but also provides an attractive return for Velliv's customers in VækstPension Aftryk and VækstPension Aktiv.
Asbjørn Purup Andersen
Senior Portfolio Manager - specialising in these particular kinds of bonds.
Diving in to the Islands Marine Conservation bond
The agreement is estimated to generate USD 450 million funding for ocean conservation to support 138,000 km2 Galápagos Marine Reserve, originally established in 1998 and expanded by 50 per cent in 2022 with the 60,000 km2 Hermandad Marine Reserve (meaning 'brotherhood' reserve). The Republic of Ecuador has committed to several marine conservation goals as well as USD 17.5 million in annual conservation payments over the next 18.5 years to the Galápagos Life Fund (GLF) where part of the cash flow will capitalise an emdownment fund to secure that GLF will be self-funded without additional payments by Ecuador required beyond 2041.
The transaction will also improve debt sustainability for Ecuador, lowering medium-term external debt financing needs while generating lifetime savings (net of conservation payments) in excess of USD 1.13 billion through reduced debt service costs.