Gabon Blue Bond — Sovereign Debt Conversion for Ocean Conservation

On 14 August 2023, Gabon, Bank of America and The Nature Conservancy closed a $500 million debt-for-nature swap — the first such transaction in mainland Africa — repurchasing Gabon's dollar-denominated bonds at roughly 40 cents on the dollar and refinancing the debt through a new loan backed by blue bonds.

The lower interest rate and longer repayment period unlock $163 million in new funding for ocean conservation, including $5 million a year for 15 years plus a conservation endowment projected to reach about $88 million by 2038, financing Gabon's National Marine Spatial Plan and a binding commitment to expand marine protection from 26% to 30% of national waters.

The deal is part of The Nature Conservancy's broader Blue Bonds for Ocean Conservation programme, which by 2023 had refinanced more than $1.2 billion of sovereign debt globally and generated over $400 million for conservation across more than 176 million hectares of ocean.

Independent commentary has raised governance questions after Gabon's government changed following a 2023 coup shortly after the swap closed, asking whether conservation funds will be transparently managed and whether coastal fishing communities will see direct benefits; the successor government has stated it will honour the agreement, but independent, community-level impact evidence is not yet available given the deal's recency.