ZURICH, 20 December 2021 / PRNewswire / – Chubb today announced its support for the United States International Development Finance Corporation (DFC) participating in a landmark debt restructuring and ocean conservation project in Belize. Chubb Global Markets and Sovereign Risk Insurance Limited, a Chubb company, as well as other private insurers, provided $ 300 million reinsurance business to DFC as part of an innovative political risk insurance operation designed to help Belize reduce its external public debt and finance marine protection.
The operation assured, a $ 364 million loan structured and arranged by Nature conservation (TNC) and Credit Suisse, will allow the country to reduce its debt burden by around $ 250 million and generate an estimate $ 180 million for marine conservation over 20 years. DFC provided approximately $ 610 million political risk insurance (covering the principal and interest of the loan) to support the transaction, thereby ensuring that the loan has obtained an investment grade rating. Due to the large size of DFC’s exposure, the backing of private political risk reinsurance was a critical part of the deal.
DFC’s support for this project represents one of the most innovative examples of climate finance and a model for the future, as it reduces from Belize debt, generates investments in the protection of the marine environment and biodiversity and promotes climate resilience in the country’s “blue” economy. With this loan, Belize is able to redeem and repay a significant portion of its external commercial debt, create significant annual cash flows for marine conservation through 2040, and establish an endowment to fund marine conservation for future generations. This transaction represents the world’s largest debt restructuring for nature focused on marine conservation to date and is the second transaction for TNC’s “Blue Bonds for Ocean Conservation” program.
“The private political risk insurance market is delighted that we were able to support the DFC in such a meaningful way in this groundbreaking transaction,” said Price Lowenstein, President of Sovereign Risk Insurance. “This is a great example of a public-private partnership that can serve as a model for future ‘blue’ debt financing. Not only are we helping make a remarkable conservation project possible, but we also support sustainable economic development and community resilience through critical debt relief. “
Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb offers property and casualty insurance, supplementary accident and health insurance, reinsurance and life insurance to a diverse group of customers. As an underwriting company, we assess, assume and manage risk with insight and discipline. We process and pay our complaints fairly and promptly. The company is also defined by its broad product and service offerings, broad distribution capabilities, exceptional financial strength and local operations on a global scale. Head quarter Chubb Limited is registered on the New York Stock Exchange (NYSE: CB) and is included in the S&P 500 Index. Chubb has executive offices in Zurich, New York, London, Paris and other sites, and employs approximately 31,000 people worldwide. Additional information can be found at: www.chubb.com.
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