IDB Invest, IFC, and Itaú Unibanco Holding S.A. (Itaú) have announced a BRL 1.4 billion (equivalent to $250 million) bond issuance to support biodiversity and social initiatives in Brazil. Through this private placement, IFC will subscribe up to $200 million as the anchor investor and IDB Invest will complement with an additional $50 million. This three-year bond focused on environmental sustainability and expanding Itaú’s portfolio for underbanked segments. The issuance was carried out under Itaú’s Global Medium-Term Note Programme and divided into two series. 

This marks Itaú's first bond with a focus on nature, designed to expand credit access. Up to $75 million from the first series will support biodiversity initiatives, including Itaú’s and Syngenta’s REVERTE® Program, aimed at regenerating degraded pastures into productive lands, preserving native vegetation, and advancing regenerative agriculture. This initiative targets the recovery of 1 million hectares of degraded soil by 2030. The second series will allocate $175 million to strengthen Itau’s portfolio supporting micro, small, and medium-sized enterprises (MSMEs) in Brazil. 

This bond aligns with International Capital Market Association (ICMA), underscoring Itaú's commitment to environmental sustainability and supporting underbanked segments such as MSMEs and women-led enterprises.

In Brazil, MSMEs represent over 98% of businesses and 27% of the country’s GDP, yet face limited access to capital. The country is also home to 20% of the world’s biodiversity, including the Atlantic Forest and the Cerrado, and enforces protective measures through the Brazilian Forestry Code and programs like REVERTE®.

In this context, financial institutions are key drivers of sustainable development. Thematic bonds enhance impact by channeling investments into projects aligned with these goals, while increasing transparency and accountability. 

“We are committed to supporting our clients in the transition to a low-carbon economy, providing the capital needed to drive sustainable development and address increasingly present climate challenges. Our efforts have focused on projects such as REVERTED®️, which represent successful solutions for the Brazilian bioeconomy,” said Daniel Goretti, treasury director at Itaú Unibanco.

“At IDB Invest, we are committed to promoting a financial sector that focuses on sustainable economic growth across the region. This landmark bond issuance with Itaú reinforces the importance of sustainable finance in advancing the conservation, restoration, and sustainable use of natural capital in Brazil. This partnership exemplifies how financial innovation can mobilize resources to address environmental challenges, while fostering long-term prosperity,” said Diego Flaiban, director and division chief of the financial sector (a.i.) at IDB Invest.

"We are proud to partner with IDB Invest and Itaú Unibanco on this groundbreaking sustainable bond issuance, which underscores our commitment to promoting biodiversity conservation and inclusive finance in Brazil. This initiative supports the preservation of Brazil's rich natural heritage and empowers micro, small, and medium enterprises by providing them with much-needed access to capital,” said Manuel Reyes Retana, IFC’s regional director for South America. “This partnership exemplifies our dedication to creating impactful solutions that benefit both the environment and the communities we serve," he added. 

Additionally, IDB Invest and IFC will build technical capabilities within Itaú and raise awareness among its clients about financing opportunities for biodiversity in Brazil. Within this project, IFC supported Itaú in building financing capacity and identifying assets in its portfolio and pipeline. in accordance with IFC’s Biodiversity Finance Reference Guide as well as the environmental objectives of ICMA’s GBP, which include conservation, pollution prevention and control, natural resource conservation, climate mitigation and adaptation.

About IDB Invest

IDB Invest 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 $21 billion in assets under management and over 394 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 IFC 

IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using itscapital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private-sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

About Itaú Unibanco Holding S.A. 

Itaú Unibanco’s purpose is to promote people’s power of transformation, and it does it through a strategic agenda focused on client centricity and digital transformation, based also on the diversity of its people. The largest bank in Latin America, Itaú Unibanco is present in 18 countries and serves 70 million customers, including individuals and companies in all segments, to whom it offers the best experiences in financial products and services. Itaú Unibanco has been selected for the 24th consecutive time to be part of the Dow Jones Sustainability World Index (DJSI World), being the only Latin American financial institution to be part of the index since its creation in 1999. www.itau.com.br.