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IDB Invest Supports Responsible Agriculture in Brazil

 

WASHINGTON – IDB Invest is supporting sustainable agriculture in Brazil by financing the Responsible Commodities Facility (RCF), an initiative that boosts soy production while expanding the area of protected native vegetation.

 

IDB Invest will invest up to $10 million to expand the RCF, a farmer financing program launched in the 2022/2023 crops season, that promotes the responsible production and trade of Deforestation and Conversion-Free (DCF) soy in Brazil's Cerrado biome, one of the world's most biodiverse savannas. The program offers lower-interest credit lines to soy farmers committed to zero deforestation and the preservation of native vegetation.

 

The financing will be provided through the subscription of a local tranche of up to $10 million in senior Agribusiness Receivables Certificates (CRAs), out of a total of $60 million, issued by OPEA Securitizadora S.A. These certificates are backed by credit rights from loans to eligible farmers under the RCF program. Structured by SIM (Assessoria em Investimentos Sustentáveis Ltda.), the RCF uses a direct-lending model to advance responsible soy production. 

 

Soybeans are an essential global commodity, and Brazil leads production with nearly 40% of the world’s supply. Market-driven initiatives and regulations—such as the Cerrado Manifesto and the EU Deforestation Regulation—are reinforcing the demand for sustainable soy. The RCF program aligns with these trends by addressing both environmental preservation and financial accessibility for producers.

 

The investment will boost sustainable soy production while expanding the area of protected native vegetation. Proceeds will be used to finance farmers who meet strict environmental standards, offering them access to reliable, lower-cost credit.

 

For the 2025/2026 season, the program aims to provide up to $60 million in financing to support 280 farmers, with the goal of producing 240,000 tons of DCF soy, conserving 90,000 hectares of land, and helping capture 22 million tons of CO₂. The initiative will also enhance access to working capital for seeds and operational expenses for farmers.

 

Beyond financing, IDB Invest adds value by integrating environmental and social (E&S) safeguards into the project that go beyond local regulations. This includes strengthening the RCF’s E&S management systems and establishing an external grievance mechanism. In 2025, the program also plans to launch technical assistance partnerships –potentially with the Agri3 Fund and Brazilian experts in sustainable agriculture – to help farmers adopt regenerative practices and restore degraded pasturelands. 

 

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 $22 billion in assets under management and more than 400 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 idbinvest.org/en

 

About Opea

Opea is the hub for structured credit solutions that drive business growth and results for companies, arrangers, and investors. With an integrated network of solutions, it brings together deep industry knowledge, technologies, and innovations that enable scalable transactions through the capital markets. Always a true partner, it operates in harmony with each transaction, ensuring outcomes that lead to genuine transformation. Its website is opea.com.br.

 

About Sustainable Investment Management Ltd (SIM)

Sustainable Investment Management Ltd (SIM) is a boutique environmental finance advisory firm incorporated in 2018 which promotes the financing of activities that result in positive environmental impacts worldwide. SIMs vision is to create a double bottom-line global investment firm to mobilise capital for actionable sustainable development, by connecting investors seeking positive environmental change with credible businesses and implementable projects that have a direct and immediate environmental impact. Our aim is that our financial mechanisms can have a disruptive effect at scale, helping to inflict change at sector or landscape level. SIM works in four different sectors; Sustainable agriculture, Sustainable forest and conservation finance, Greenhouse gases (GHG), Waste management and the circular economy.