IFC, IDB Invest, and Itaú Unibanco Holding S.A. have launched a BRL 1.4 billion ($250 million) bond issuance aimed at supporting biodiversity conservation and expanding access to credit for micro, small and medium-sized enterprises (MSMEs) in Brazil.
Structured as a private placement, the bond is divided into two series. IFC is anchoring the transaction with up to $200 million, while IDB Invest is contributing $50 million.
The three-year issuance marks Itaú’s first bond with a dedicated focus on biodiversity and is aligned with the Green and Social Bond Principles of the International Capital Market Association (ICMA).
The first tranche of the bond will allocate up to $75 million to biodiversity projects, including funding for Itaú’s partnership with Syngenta’s REVERTE® program.
The initiative aims to restore one million hectares of degraded land in Brazil by 2030, while preserving native vegetation and promoting sustainable agricultural practices.
The remaining $175 million will be channeled into Itaú’s MSME lending portfolio to enhance credit access for small businesses, which represent 98.5% of businesses and contribute 27% to Brazil’s GDP.
Despite Brazil’s sophisticated financial system, access to capital remains limited for MSMEs due to high interest rates and regulatory complexity.
In the green finance space, Brazil’s significant biodiversity — including the Atlantic Forest and the Cerrado — underscores the need for sustainable financing mechanisms.
The bond aims to bridge this gap by mobilizing capital toward projects that align with national conservation priorities and international climate goals.
The issuance is expected to bolster Itaú’s capabilities in biodiversity finance.
IFC and IDB Invest will also provide technical support to help the bank identify biodiversity assets and expand awareness among clients about sustainable finance opportunities.
The initiative is further backed by policy reform efforts in Brazil supported by the World Bank Group.
These reforms are designed to foster a more conducive environment for sustainable agriculture and environmental restoration.
The bond project aligns with multiple United Nations Sustainable Development Goals, including Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Industry, Innovation & Infrastructure (SDG 9), and Life on Land (SDG 15).