Bank of America Expands Debt-Swap Footprint With Ecuador Deal

Bank of America Corp. is establishing itself as a repeat dealmaker in a nascent market that helps emerging economies refinance debt, and use any money saved on conservation.

In its second such transaction since arranging a debt swap for Gabon last year, BofA is now helping Ecuador buy back old debt, which will be done using new bonds that will also help cover the cost of a new loan. The deal, which also marks Ecuador’s second foray into the market, has already buoyed the country’s bonds.

Such transactions, known as debt-for-nature swaps, are gaining in popularity both among emerging markets ...