RIO DE JANEIRO - The Inter-American Development Bank (IDB), the National Bank for Economic and Social Development of Brazil (BNDES), the Bank of Brazil (BB) and the CAIXA Econômica Federal (CAIXA) plan to develop a new exchange-traded fund (ETF) to be listed on Brazil’s B3 stock exchange as a way to finance sustainable investments in the Amazon.
The Amazonia for All ETF aims to democratize access to sustainable investments, combining the use of financial resources with performance-based incentives and cultivating a more diverse and broader investor base in domestic and international markets.
At this stage, the aim is to lay the groundwork for creating and distributing shares of the ETF on the capital market before the COP30 to be hosted in the Brazilian city of Belém, in the state of Pará, in 2025.
To conduct the studies for the Amazonia for All ETF, today a letter of intent was signed by IDB President Ilan Goldfajn; BB vice-president of Business Government, and Corporate Sustainability, José Ricardo Sasseron, acting on behalf of President Tarciana Medeiros; the vice-president of Sustainability and Digital Citizenship at CAIXA, Paulo Rodrigo Lopes, acting on behalf of the president Carlos Vieira; and the Director of People, Management, and Operations for BNDES, Helena Tenorio, acting on behalf of the bank’s president, Aloizio Mercadante.
The resources from the portfolio of fixed income assets of BNDES, BB and CAIXA of this new fund are set to be allocated to sustainable loans in Brazil’s Amazon region. This fund will track a new benchmark index that has yet to be created.
An ETF was chosen as the vehicle for raising funds because it offers equal access to small and large investors alike and is highly liquid, since the shares are listed on stock exchanges. The aim is for any individual or entity to buy and sell shares of the ETF at an approximate value of R$ 100.00.
Another positive feature of ETFs is that the index provider typically discloses the portfolio composition daily. This allows investors to know exactly what they are investing in.
In addition, widespread use of ETFs in the international market makes it easier to promote and trade this instrument through global investment platforms.
"A year ago, the IDB launched its holistic Amazonia Forever program. Now, alongside our partners, we announce our plan for the Amazonia for All ETF, which will democratize investments for the Amazon and support a sustainable future for the region. Through this new instrument, we take yet another step to ensure that the Amazon will be with us forever," says IDB President Ilan Goldfajn.
“This act of joining forces to drive sustainable development in the Amazon using an innovative instrument on the Brazilian capital market underscores BNDES’ commitment to the COP 30 agenda. Under the Lula administration, BNDES is adeptly and transparently realizing its historic role as a key driver of innovation and sustainability in the Brazilian economy,” says BNDES President Aloizio Mercadante.
Bank of Brazil President Tarciana Medeiros emphasizes the importance of acting in conjunction with various social stakeholders. "This is yet another example of our practical and consistent performance on ESG, along with many other initiatives like joining the Green Coalition and partnering with development banks to promote inclusive productive activities. The return on this investment goes beyond the financial; today we are building a more promising, fair and environmentally responsible future,” she says. "This ETF is therefore an invitation for our investor clients to join us in our pursuit of a more sustainable economy," adds Medeiros.
For CAIXA's president, Carlos Vieira "this initiative shows how cooperation can bring permanent benefits for society, especially when it comes to sustainable investments. From our bank's floating branches to financial instruments such as this ETF, CAIXA is stepping up its actions to truly impact the development of the Amazon region and its people," Vieira said.
"We believe that through investment and innovation—like selecting model bioeconomy or socio-biodiversity projects in all biomes or projects with innovative and sustainable housing solutions for the Amazon—CAIXA can help Brazil find practical solutions to challenges like climate change, the energy transition, and sustainable agribusiness," he adds.
BNDES, BB, and CAIXA will partner to conduct studies for this ETF, with technical and financial support from the IDB. This partnership also aligns with the objectives of the Green Coalition, an international alliance of public development banks launched last year to promote joint initiatives for the sustainable development of the Amazon region.
About CAIXA
With 163 years of history, CAIXA plays a leading role as the Brazilian federal government's main partner and agent of change for a fairer and more equal society. The bank transform people’s lives by promoting inclusion and sustainable development. With this vision, CAIXA centers its actions on sustainability and digital citizenship, with a specific vice presidential office for these issues. In addition, the bank offers business solutions, national and international partnerships and sustainable initiatives, such as the CAIXA Socio-Environmental Fund and endorsements of good environmental practices. For more information, visit: www.caixa.gov.br/sustentabilidade
About Bank of Brazil
Bank of Brazil promotes sustainability through its actions, with public commitments and concrete goals. In 2023, the Bank created the ESG unit, with an exclusive focus on social, environmental and governance issues. That same year, it became an ambassador for three UN Global Compact movements: Elas Lideram 2023, Race is Priority and Living Wage. It also reinforced the 12 Bank of Brazil Commitments for a More Sustainable World. Bank of Brazil is the most sustainable bank on the planet and the first to have formally disclosed ESG guidelines to the market. For more information, visit: bb.com.br/sustentabilidade
About BNDES
BNDES is the main instrument of its sole shareholder, the Brazilian federal government, for long-term financing and investment in various segments of the Brazilian economy. A federal public company tied to the Ministry of Development, Industry, Commerce and Services, it was founded on June 20, 1952. It operates throughout the county from its office in Rio de Janeiro (RJ), where most of its activities are concentrated, and has its official headquarters in Brasília (DF). It also has regional offices in São Paulo (SP) and Recife (PE). For more information, visit: www.bndes.gov.br
About Amazonia Forever
Amazonia Forever is a holistic umbrella program that aims at protecting biodiversity and accelerating sustainable development in three lines of action: expanding funding, boosting knowledge exchange, and facilitating regional coordination among the eight Amazonian countries.
The program is based on five pillars: (i) Combating deforestation and strengthening environmental control and security in the context of national governments; (ii) Bioeconomy and creative economy, promoting alternative and sustainable economic activities; (iii) People, aiming at adequate access to quality education, healthcare, and employment; (iv) Sustainable cities and infrastructure and connectivity; and (v) Sustainable, low-carbon agriculture, livestock and forestry. In addition, the program focuses on promoting the inclusion of women, indigenous peoples, people of African descent and local communities; climate and forest conservation; and strengthening institutional capacities and the rule of law.
About the IDB
The Inter-American Development Bank, a member of the IDB Group, is devoted to improving lives in Latin America and the Caribbean. Established in 1959, the IDB partners with the public sector in the region to design and provide innovative, high-impact solutions for sustainable and inclusive development. Through financing, technical experience, and knowledge, it drives growth and well-being in 26 countries. Visit our website at https://www.iadb.org/en.
Borges De Padua Goulart Janaina
Molina Medina,Vanessa Carolina
Amazonia Forever
A holistic umbrella program for the region's sustainable development that aims to collaborate on forest conservation and climate action, offering economic alternatives to improve people's quality of life.