THE Inter-American Development Bank (IDB) has issued its first Amazonia Bond, raising US$100 million to fund high-impact sustainable development projects across the Amazon region. This operation marks a pioneering step in leveraging capital markets to protect one of the planet’s most vital ecosystems while empowering local communities.
Structured under the Amazonia Bond Issuance Guidelines, co-developed by the IDB and the World Bank, and the IDB’s Sustainable Debt Framework, the bond follows rigorous standards for use of proceeds, impact measurement, and transparency.
The fixed-rate bond, managed by Crédit Agricole CIB, is the first in a series of issuances under the IDB’s pioneering $1 billion Amazonia Bond Program, whose proceeds will support projects that improve local livelihoods, strengthen economic resilience, promote sustainable forest management, and protect biodiversity. The 5-year bond will pay an annual coupon of 3.802%.
Following this pioneering issuance, the National Treasury of Brazil has expressed its support for the initiative and its intention to explore the possibility of issuing its own bonds under the Amazon Bonds Guidelines, with support from the IDB and the World Bank.
“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. 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,” said Ilan Goldfajn, President of the IDB Group.
In July, the IDB and the World Bank announced a strategic collaboration to support countries and institutions in launching their own Amazonia Bond Issuance Programs, with the IDB agreeing to be the first institution to establish such a program.
The programme is part of Amazonia Forever, the IDB Group’s regional coordination programme for conservation and sustainable development of Amazonia. Spain, Germany and the Green Climate Fund provided key support for the development of the guidelines.