Finnfund has invested $15 million in a nature bond issued by African bank Ecobank Transnational Incorporated NSENG:ETI, the Finnish investment company said on Monday.
The bond from Ecobank is aimed at mobilising up to $450 million to finance sustainable agriculture, biodiversity and water infrastructure across sub-Saharan Africa.
These debt-for-nature swaps aim to reduce interest payments so governments can spend more on conservation, but the market has faced a relative drought since U.S. President Donald Trump's return to power, with U.S.
In February, British fund management and insurance company Legal & General LSE:LGEN said it was committing up to $1 billion over the next five years to become a cornerstone investor in a major wave of "debt-for-nature" swaps in developing countries.