Key Impact Points:
- Boosting the Amazon Bioeconomy: IFC’s investment in Natura supports sustainable sourcing and bioeconomy development in the Amazon, promoting environmental protection and regeneration.
- Economic and Community Benefits: The investment aims to enhance the local economy, support agroforestry sustainable supply chains, and boost community livelihoods.
- Innovative Financing: Natura’s Sustainability-Linked Bond is the first with sustainability performance targets linked to Amazon sourcing in Brazil, demonstrating a pioneering approach to sustainable investment.
Investment Details
The International Finance Corporation (IFC), part of the World Bank Group, has announced a substantial investment to support Natura in promoting sustainable sourcing, which will bolster the Amazon bioeconomy and contribute to the protection and regeneration of the Amazon Forest. This initiative is expected to significantly benefit the local economy and communities, supporting agroforestry sustainable supply chains in the region.
Sustainability Linked Bond
IFC has invested BRL 300 million (US $55M) in a Sustainability-Linked Bond (SLB) issued by Natura in the form of debentures. Notably, this is the first Sustainability-Linked Bond in Brazil with sustainability performance targets linked specifically to Amazon sourcing, marking Natura’s 13th debenture issuance and closing at a total of BRL 1.32 billion (US $255M). As the anchor investor, IFC’s involvement also helped Natura mobilize additional funding for investments in the Amazon.
Change the World - Subscribe Now
Strengthening the Amazon Bioeconomy
Silvia Vilas Boas, Natura’s Finances and Strategy VP, emphasized the significance of this issuance in strengthening the Amazon bioeconomy. “This move is essential not just to fight the climate crisis, but also to promote substantial economic, social, and environmental benefits to the region. Brazil has an immense potential to globally lead this business model that harmonizes income generation with environmental conservation,” she stated. Highlighting the challenges, she added, “Widening the bioeconomy is crucial, and we need to strengthen all of its encompassing ecosystems. The issuance is a powerful tool to help us reach this goal.”
Partnership with IFC
Manuel Reyes-Retana, IFC Regional Director for South America, expressed enthusiasm about the partnership. “We are excited to partner with Natura and anchor the issuance of the first Sustainability-Linked Bond with performance targets linked to Amazon sourcing in Brazil. We are confident that IFC’s investment will help bolster Natura’s production of bioingredients, highlighting important sustainable sourcing initiatives and contributing to biodiversity conservation. This is an important path to reconcile the protection of the Amazon with economic development,” he said.
Future Developments
IFC’s investment will aid Natura in the development and sourcing of bioingredients from the Amazon, enhancements to manufacturing and distribution infrastructure, and the purchase of equipment for product line updates and growth, thereby reinforcing the sustainable economic model and environmental stewardship in the Amazon region.
Related Article: Dominican Republic Launches Inaugural $750 Million Green Bonds Initiative
