ESG & Investing
Debt Swaps Arranged by Credit Suisse, BofA Face Scrutiny
- ICMA weighs in on questions around use-of-proceeds bonds
- ‘Blue’ bonds sold to back debt swaps raise labeling questions
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Bond deals arranged by Credit Suisse and Bank of America Corp. in connection with debt swaps for emerging-market issuers are facing renewed scrutiny, after the International Capital Market Association issued new labeling guidelines.
The bonds were sold over the past few years to finance so-called debt-for-nature swaps, through which sovereigns refinance their debt in exchange for marine conservation pledges. Credit Suisse and BofA labeled the bonds “blue” to reflect those commitments.