IFC and IDB Invest Forge Partnership with Itaú Unibanco to Issue First Bond with a Focus in Biodiversity and Social Initiatives in Brazil

São Paulo, March 20^th, 2025 - IFC,  IDB Invest, and Itaú Unibanco Holding S.A. (Itaú) have announced a BRL 1.4 billion (equivalent to $250 million) in a bond issuance divided in two series to fund biodiversity conservation and social initiatives in Brazil.

Through this private placement, IFC will subscribe up to $200 million and is acting as anchor investor to mobilize a $50 million investment from IDB Invest, in a three-year bond focused on environmental sustainability and expanding Itaú’s Inclusive Finance portfolio.

This marks Itaú's first bond with a focus on biodiversity, aimed at increasing access to credit for green projects. The funds of the first series will be allocated with up to $75 million towards biodiversity and to fund Itaú’s and Syngenta’s  REVERTE® Program, that was created to support rural producers in recovering  degraded areas, preserving native vegetation, and advancing good agriculture practices. This initiative targets the recovery of 1 million hectares of degraded soil by 2030. The second series will be directed to micro, small, and medium enterprises (MSMEs) in Brazil, with a funding of $175 million to Itaú’s MSME portfolio. The issuance was made under Itaú’s Global Medium-Term Note Programme.  

This bond aligns with International Capital Market Association  (ICMA)’s green and social bond principles, underscoring Itaú's commitment to environmental sustainability and inclusive finance.

This project becomes relevant in a context where Brazil, despite having an advanced financial system, still faces challenges to meet the increasing needs for financing green and social initiatives. MSMEs, which comprise 98.5% of businesses and 27% of the country’s GDP, struggle with limited access to capital due to high interest rates, complex taxes, and restricted loan options. In terms of green lending, the country, home to 20% of the world’s biodiversity, including two biodiversity hotspots, the Atlantic Forest and the Cerrado, enforces protective measures through the Brazilian Forestry Code and programs like REVERTE®, aimed at restoring degraded land through technical and financial support.

In this scenario, financial institutions play a critical role in financing social and green projects by providing the capital needed to drive sustainable development and reduce inequality. Thematic bonds enhance the impact by channeling investments into projects aligned with global sustainability 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 REVERTE®️, which represent successful solutions for the Brazilian bioeconomy,” says Daniel Goretti, Treasury Director at Itaú Unibanco.

"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.

“At IDB Invest, we are committed to promoting a financial sector that focuses on sustainable and inclusive economic growth across the region. This landmark bond issuance with Itaú reinforces the importance of sustainable finance in advancing biodiversity conservation in Brazil. This partnership exemplifies how financial innovation can mobilize resources to address environmental challenges while fostering long-term prosperity”, commented Diego Flaiban, Director and Division Chief of Financial Sector (a.i.) at IDB Invest.

Additionally, IFC and IDB Invest will build technical capabilities within Itaú and raise awareness among its clients about financing opportunities for biodiversity in Brazil. Within this project, IFC supported the Bank in building capacity in biodiversity finance, identifying biodiversity 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 biodiversity conservation, pollution prevention and control, natural resource conservation, climate change mitigation, and climate change adaptation.

This financing to Itaú will also benefit from the World Bank Group´s support  to policy reforms in Brazil that are expected to create an enabling environment for sustainable agriculture and will have synergies with IFC projects to increase biodiversity restoration and monitoring. 

This project is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Industry, and Innovation & Infrastructure (SDG 9), and Life on Land (SDG 15).

About Itaú Unibanco Holding S.A.

Itaú Unibanco’s purpose is to promote people’s power of transformation, and we do it through a strategic agenda focused on client centricity and digital transformation, based also on the diversity of our people. The largest bank in Latin America, Itaú Unibanco is present in 18 countries and 70 million customers, among individuals and companies in all segments, to whom we offer the best experiences in financial products and services. Itaú Unibanco has been selected for the 24rd 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

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. We work in more than 100 countries, using our capital, 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.

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