Inter-American Development Bank issues first Amazonia Bond of 2026

The Inter-American Development Bank (IDB) has issued its first ‘Amazonia Bond’ of the year, raising AU$1 billion to finance sustainable development projects across the Amazon region.

This marks the second transaction under the Amazonia Bond programme, which was launched last year, which build’s on the IDBs strategy of ‘tapping the full power of capital markets to support conservation, economic opportunity, and community development in the Amazon’, it said in a statement.

The bond was issued under the Amazonia Bond Issuance Guidelines, which were developed by the IDB and World Bank, and the IDB’s Sustainable Debt Framework, which defines standards relating to the use of proceeds, impact management and transparency.

‘Development at scale’

“This first benchmark issuance under our $1 billion Amazonia Bond programme shows how capital markets can support conservation and development at scale,” commented Ilan Goldfajn, president of the IDB Group.

“Issuing this bond in Australian dollars underscores that protecting the Amazon is a global priority — and that investors around the world are willing to back it with long-term capital. The proceeds will support projects that protect the forest, strengthen local economies, and deliver measurable results, while providing a model that countries and institutions can use to develop their own Amazonia bond programs.”

The bond pays a semi-annual coupon of 4.60% and matures on 21 July 2031. It was priced with a spread of 39 basis points over semi-quarterly asset swap, equivalent to 38.9 basis points over the Australian Government Bond 1.5% due in June 2031.

Final order books exceeded AU$3.5 billion, including AU$400 million from joint lead managers, the IDB added.

The Amazonia Bond programme forms part of Amazonia Forever, a region coordination programme organised by IDB Group for the conservation and sustainable development of the Amazon basin. It encompasses financing, data and regional coordination among eight Amazon countries.

‘A significant milestone’

“This transaction is a significant milestone with proceeds expected to be used to support environmental, social and economic development in the Amazonia region,” added Jimmy Choi, global head of capital markets at ANZ. “A first-of-its-kind, this Amazonia Bond unlocks private capital for the region and further strengthens IDB’s distinguished track record.”

Elsewhere, Keiji Machida, chairman and CEO of Daiwa Capital Markets America Inc, added that the transaction “illustrates how well-structured, high-quality bond issuances can effectively channel global liquidity to where it matters most.” Read more here.