Clauses and Controveries: From Commercial Bank Loans to Blue Bonds

Mark Weidemaier and Mitu Gulati

After a short hiatus (we like to say we are between seasons), the Clauses and Controversies podcast has resumed. This week's episode, From Commercial Bank Loans to Blue Bonds, features Antonia Stolper from Shearman & Sterling:

Sovereign debt markets have evolved significantly over the years, from syndicated bank loans, to bonds, to the current infatuation with ESG lending. Antonia Stolper (Shearman & Sterling) joins us to talk about the evolution of sovereign debt practice over the course of her eminent career. We also talk about Belize's recent debt restructuring, where some say creditors agreed to significant additional reductions in exchange for promises by Belize to invest the savings in environmental conservation projects. Antonia helps us understand what actually happened in this deal and what its implications might be for future sovereign restructurings.

Comments

[Jorge Piedrahita]

It was great and very entertaining to listen to Antonia’s ample wealth of experience and the details of the Belize transaction.

Debt-for-nature transactions are not new and have been on the radar since at least the 1980s. The Belize transaction is more complex than what was envisioned a few decades ago.

Please see the 1987 transaction in Bolivia:

https://www.nytimes.com/1987/07/14/science/bolivia-to-protect-lands-in-swap-for-lower-debt.html