Enosis Capital, a credit fund specialising in innovative finance, has partnered with AXA XL to insure a new $3 billion initiative focused on ‘debt-for-nature’ swaps. The first of these deals is anticipated to be completed within the next six to nine months. Enosis Capital was co-founded in late 2024 by Ramzi Issa, formerly of Credit Suisse, after he spent years pioneering debt-for-nature-swap structuring.
Debt-for-nature swaps are designed to alleviate the financial burden on developing nations, enabling them to allocate greater resources towards preserving vital ecosystems like coral reefs and rainforests. This is achieved by replacing expensive government bonds with more affordable alternatives. While these swaps have gained traction in countries such as Belize, Barbados and Ecuador, recent political shifts have caused a slowdown in activity.
The collaboration between Enosis Capital and AXA XL aims to revitalise this market. AXA XL will provide political risk and other essential insurance, which is crucial for attracting private sector participation and ensuring the success of these deals. Enosis Capital plans to execute a pipeline of debt swaps and development deals over the next four years, with expectations of finalising the first deal in the coming months and another before year’s end.
This partnership also involves the ‘Debt For Nature Coalition’, including Conservation International, the World Wildlife Fund, and Leonardo DiCaprio’s Re:wild group, to advance the market further. AXA XL views debt swaps as a growth area and has been involved in several swaps over the past decade, including a significant role in the Bahamas in late 2024. The goal is to streamline the complexities inherent in debt swaps and accelerate their implementation, making the process more systematic and efficient.
