Goldman Sachs, BofA Are Working on a New Debt Swap for Ecuador

Goldman Sachs Group Inc. and Bank of America Corp. are laying the groundwork for a swap that will help Ecuador manage its debt financing costs in exchange for a pledge to protect part of the Amazon rainforest, according to people familiar with the matter.

The two investment banks are preparing a deal ahead of formally engaging with potential investors for the transaction, said the people who asked not to be identified discussing private talks. The Nature Conservancy, a non-governmental organization, will be an adviser on the deal, they said.

The transaction will take the form of a so-called debt-for-nature ...