Enosis Capital secures $1bn anchor for 'debt-for-nature' deals: 'Monumental step forward'

British impact credit firm Enosis Capital has secured a $1bn anchor commitment to finance debt investments in nature conservation.

The UK’s largest asset manager, L&G, committed the capital, which will be allocated over the next five years for so-called “debt-for-nature” swaps in developing countries, Reuters reports.

In a debt-for-nature swap, lenders reduce or refinance part of a developing country’s debt, and the country commits to spending money to protect forests, oceans, or other natural areas.

Ramzi Issa, a former investment banker at UBS, pioneered the concept which is designed to finance global nature conservation and restoration. In late 2024, Issa left the Swiss investment banking giant and launched Enosis Capital alongside Braeden Mayer and Babur Rais.

In November, Enosis secured a $100m commitment from Zoma Lab, the family office of Walmart heir Ben Walton.

Zoma Lab is part of the Debt for Nature Coalition, a group of seven environmental organisations that have endorsed debt-for-nature swaps – and Enosis’s new vehicle. Members include The Nature Conservancy, the World Wide Fund for Nature (WWF), and Re:Wild, founded by actor Leonardo DiCaprio.

In January, Enosis signed an agreement with Axa XL to provide crucial insurance cover for the firm to facilitate up to $3bn debt-for-nature deals, backed by the Coalition and now L&G.

Issa said the combination of L&G, AXA XL and key NGOs under the Ensosis umbrella would make it easier for countries to undertake debt-for-nature swaps.

“We want to get to market quicker by offering a comprehensive package in these transactions,” Issa told Reuters, adding ‌that around a dozen swaps were currently in the works.

Adam Tomasek, who heads the Debt for Nature Coalition of conservation groups, told Reuters that L&G’s upfront commitment and Enosis’ broader setup should help persuade more governments to pursue swaps. “This is a monumental step forward,” he said.

The investments come at a crucial time for nature: global wildlife populations have been reduced by 70% since 1970.