Credit fund Enosis Capital has reached an agreement with AXA XL to provide insurance coverage supporting a new $3 billion pipeline of debt-for-nature transactions. According to Reuters, the partnership is expected to underpin a series of deals over the next four years, with the first transaction anticipated within the next six to nine months.
Debt-for-nature swaps are financial arrangements designed to help lower-income countries redirect funds toward conservation efforts. These deals typically replace existing government debt with lower-cost financing, enabling countries to allocate more resources to ecosystems such as coral reefs and rainforests.
Recent examples in Belize, Barbados, and Ecuador’s Galapagos Islands have contributed to growing awareness of the structure. However, market activity slowed over the past year. Reuters reported that changes at key institutions followed the return of U.S. President Donald Trump, a climate change skeptic, which contributed to a temporary reduction in deal volume.
Despite that slowdown, countries continue to show interest in using debt swaps. As a result, specialist finance and insurance firms are increasingly stepping into roles long considered essential to the market’s expansion.
Enosis Capital co-founder Ramzi Issa said broader private sector participation is necessary for debt-for-nature transactions to scale. Issa formed Enosis Capital in late 2024 after working on debt-for-nature swap structuring at Credit Suisse.
He said the partnership with AXA XL is central to Enosis Capital’s approach. Under the agreement, AXA XL will provide political risk insurance and related coverage. These forms of insurance are intended to reduce risk and support lower borrowing costs for participating countries.
Issa said Enosis Capital aims to complete more than a dozen debt-related transactions over the next four years as part of its $3 billion pipeline. He expects one deal to close within six to nine months and another before the end of the year. He declined to identify the countries involved, citing sensitivities in debt markets.
While the first transaction will not follow a traditional debt-for-nature swap structure, Issa said it will incorporate similar credit enhancements. These include risk insurance mechanisms that play a key role in keeping financing costs manageable.
The AXA XL agreement also forms part of a broader collaboration with the Debt For Nature Coalition. Coalition members include Conservation International, the World Wildlife Fund, and Re:wild, an organization backed by actor Leonardo DiCaprio.
AXA XL executives Jeff Abramson and Stuart Barrowcliff described debt swaps as a growth area for the insurer. AXA XL has underwritten multiple debt-for-nature transactions over the past decade. Most recently, the firm played a significant role in a Bahamas transaction completed in late 2024. In that deal, AXA XL insured $30 million of a $300 million loan.
Abramson said the partnership with Enosis Capital aims to address the complexity of debt-for-nature transactions. These deals often require extended negotiation periods and can take years to finalize. He said the collaboration seeks to make the process more systematic and reduce execution timelines.
According to Abramson, streamlining these structures could help accelerate deal development while maintaining the risk protections necessary for both borrowers and financial participants.
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