Peru Debt-for-Nature Swap

Peru Debt-for-Nature Swap

Project location: Peru

A New Perimeter team of lawyers, including lawyers from DLA Piper Perú, supported an historic “debt-for-nature” swap between the US and Peru that will re-direct more than $20 million to protect three priority areas in the Peruvian Amazon.  We assisted four major conservation organizations, Conservation International, The Nature Conservancy, Wildlife Conservation Society, and WWF, jointly, to draft agreements and help negotiate the deal.

Key deliverables

  • Assist on all aspects of the transaction, including negotiations with the US and Peruvian governments. 
  • Help draft several agreements, including (1) a Forest Conservation Agreement establishing the governing rules for the management and use of debt swap funds, and (2) a Swap Fee Agreement between the US and NGOs setting forth the terms of the NGOs’ contributions. 

Key facts

  • The agreements will reduce Peru's debt payments to the United States Government by over $20 million.
  • The Government of Peru will redirect the payments that would have otherwise made to meet its debt obligation to a conservation fund that will protect and restore three priority areas in the Peruvian Amazon.
  • Conservation International, The Nature Conservancy, Wildlife Conservation Society, and World Wildlife Fund contributed $3 million to support the deal.
  • Debt-for-nature swaps are an important tool to help countries simultaneously alleviate debt burdens while increasing funding for critical conservation efforts.

Featured staff

Program manager: Sara K. Andrews

Program partners

“There’s a growing recognition that many countries that would like to support conservation can’t because of financial constraints, including burdensome debt. Debt-for-nature swaps give them that chance.” — Andrew Schatz, senior legal adviser at Conservation International