The Inter-American Development Bank (IDB) has issued its first ‘Amazonia Bond’, raising $100 million to support sustainable development projects across the Amazon region.
The fixed-rate bond is the first in a planned $1 billion programme designed to attract investment for conservation and community development efforts, and is a ‘pioneering step in leveraging capital markets to protect one of the planet’s most vital ecosystems’, the IDB said in a statement.
The bond is structured under Amazonia Bond Issuance Guidelines, developed by the IDB and the World Bank, following the IDB’s Sustainable Debt Framework. It is a five-year bond managed by Crédit Agricole CIB, which carries an annual coupon rate of 3.802%.
‘A new chapter’
“The issuance of our Amazonia Bonds represents a new chapter in sustainable finance, one that channels investments into nature-based solutions and community-driven progress,” commented Ilan Goldfajn, president of the IDB Group. “As a first mover, our Amazonia Bond Program offers a blueprint for others to follow, mobilising private capital to protect the Amazon and uplift its people.”
In response, Brazil’s National Treasury expressed its support for the initiative, announcing plans to explore the possibility of issuing its own bonds under the Amazon Bonds Guidelines.
Amazonia Forever
The bond programme forms part of Amazonia Forever, the IDB Group’s regional initiative that promotes biodiversity protection and sustainable growth. Amazonia Forever is supported by Spain, Germany and the Green Climate Fund, among others.
The announcement comes ahead of COP30 in Belém this month, at which IDB will be hosting more than 80 events to highlights its efforts to close financing gaps in climate resilience and sustainable development.
‘At COP30, the IDB Group is acting as a bridge – connecting governments and investors, the public and private sectors, people and communities – to mobilise at least $6 billion in announcements to help close the gaps in resilient development financing and support national priorities,’ it said. Read more here.
