New Perimeter Spotlight: Historic Debt-for-Nature Swap in Peru

A New Perimeter team, including lawyers from DLA Piper Peru, recently supported a historic “debt-for-nature” swap between the US and Peru that will redirect more than USD20 million to protect three priority areas in the Peruvian Amazon.

This project began when Andrew Schatz, a lawyer at Conservation International and former DLA Piper associate, approached New Perimeter about assisting with the transaction. Debt-for-nature swaps allow countries to reduce their debt in exchange for commitments to invest in conservation efforts.

“Conservation International is incredibly grateful for the nearly two years of support from the global DLA Piper team in the US and Peru to help make this a reality,” Andrew said. “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.”

The New Perimeter team jointly represented four major international conservation organizations: Conservation International, The Nature Conservancy, Wildlife Conservation Society, and World Wildlife Fund. The US-based team, including Ryan Lantry (Dallas) and Jesse Medlong (Seattle), worked in collaboration with lawyers from the firm’s Peru office to draft several agreements and assist with negotiations between the organizations and the governments of the US and Peru.

“This project was innovative, it was impactful, and it was something that we had the capacity to take on through the combined efforts of our corporate lawyers here in the US and the invaluable resource that we have in our Peru office,” said Sara Andrews, Co-Director of New Perimeter, DLA Piper’s nonprofit affiliate.

As a result of the agreement, the US agreed to forgive more than USD20 million of Peru’s debt. In exchange, Peru will apply that amount towards the establishment of a fund that will protect three priority areas in the Peruvian Amazon, which cover roughly ten percent of the country. The fund will establish parks and protected areas and help improve the livelihoods of the indigenous population and local communities who are the guardians of vast swaths of the Amazonian.

New Perimeter is proud to collaborate with nonprofits committed to conservation around the world.