ASUNCIÓN — IDB Invest announced a $15 million investment in the SA Impact Forestry Fund II, managed by Silvipar and Astarte, to transform approximately 44,000 hectares of degraded pastureland into sustainable forest plantations in southern Paraguay. The project will foster rural job creation, ecosystem restoration, economic diversification, and the development of a new competitive forestry hub that will improve the quality of life of local communities.

The initiative includes the management of more than 27,000 hectares of forest plantations and the conservation of over 13,000 hectares of natural habitats, with a focus on landscape restoration, biodiversity monitoring, and high environmental and social standards. The project is expected to generate around 1,300 direct and indirect jobs and to promote ecosystem services while strengthening the capacities of Paraguay’s forestry sector.

The transaction includes $7.5 million in financing from IDB Invest and an additional US$7.5 million in blended finance provided through the Finland–LAC Blended Finance Climate Fund (FBF) and the Canadian Net Zero and Climate Resilience Accelerator Fund (CF3). This structure catalyzes additional capital for an emerging sector and will help the Fund reach its target scale of $200 million, mobilizing new institutional investors.

During the signing of the agreement, held in the context of the IDB Group Annual Meetings in Asunción, Marisela Alvarenga, Head of the Financial Sector Division at IDB Invest, said: “This investment represents a decisive step toward consolidating a sustainable, competitive forestry sector with high social impact in Paraguay. By restoring degraded landscapes and attracting new investors, we are helping strengthen resilience and create opportunities for rural communities.”

In addition to financing, IDB Invest will provide support in environmental and social management, biodiversity, and ecosystem services, among other areas. The project will include enhancements to the Fund’s environmental and social management system and the implementation of a landscape-level biodiversity plan. IDB Invest will also participate in the Investors’ Advisory Committee, contributing strategic oversight and capacity building.

With this investment, IDB Invest reaffirms its commitment to advancing solutions that promote economic growth, resilience, and rural development in Paraguay.

About IDB Invest 

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.

About Silvipar

Silvipar is a forest development company with a focus on creating and managing environmentally, socially, and economically sustainable forest assets in one of the world's best suited locations, Paraguay. The team has a broad and long experience from working in the forest industry globally and has implemented several international best practice forestry projects, creating not only sustainable materials and good returns but also sequestering carbon and generating benefits to the local populations.

About Astarte Capital Partners

Astarte Capital Partners is a London-based asset management firm, founded in 2015, that specializes in private markets and is dedicated to sustainable real assets on a global scale. Astarte focus on investment opportunities in natural capital, infrastructure and real estate that align with key macroeconomic trends such as climate change mitigation, demographic shifts, resource efficiency, and technological advancements.

About the Finland–Latin America and the Caribbean Blended Finance Climate Fund

The Finland–LAC Blended Finance Climate Fund is a trust fund supported by the Government of Finland, aimed at catalyzing greater private investment in climate change adaptation and mitigation in Latin America and the Caribbean, with an emphasis on poor and vulnerable countries and communities, gender equality, diversity, inclusion, and biodiversity.

About the Canadian Net Zero and Climate Resilience Accelerator Fund

The Canadian Net Zero and Climate Resilience Accelerator Fund is a fund administered by the Inter-American Development Bank. Its purpose is to strengthen climate resilience and reduce greenhouse gas emissions in Latin America and the Caribbean through new technologies, innovative business models, and nature-based solutions, while promoting gender equality, diversity, and inclusion.