Crédit Agricole CIB acted as Sole bookrunner and Sole Sustainable Agent for the structuring of the Inter-American Development Bank’s (“IDB”) inaugural Sustainable Debt Framework and for the US$100 million first bond issued under the framework as a Social Amazonia Bond.
The IDB Sustainable Debt Framework was developed in alignment with the International Capital Market Association (ICMA) Sustainability Bond Guidelines which aligns with the 2021 Green Bond Principles (with June 2022 Appendix) and 2023 Social Bond Principles, both administered by ICMA as well as the Amazonia Bond Issuance Guidelines. The Framework designed with Crédit Agricole CIB as sole Sustainable Structuring Agent, received a Second Party Opinion from Sustainalytics.
The Social Amazonia Bond will support the financing or re-financing of social projects, programs, and activities in Latin American and Caribbean countries. The proceeds will be used for social expenditures spanning a range of Eligible Projects Categories including Access to Essential Services, Access to Basic Infrastructure, Socioeconomic Advancement and Empowerment, Cultural Heritage Preservation, Employment Generation, Food Security and Sustainable Food Systems, Security, Justice, and Conflict Resolution and/or State Modernization.
Romina Reversi, Head of Sustainable Investment Banking Americas at Crédit Agricole CIB, commented: “We are proud to support IDB in launching their inaugural Sustainable Debt Framework and the first bond issued under the Framework as a Social Amazonia Bond. IDB is showing leadership by leveraging this framework approach to accelerate sustainable development across the region.”
Matt Lawton, Head of Impact Investing at T. Rowe Price, added: “We are proud to support the Amazonia Bond issuance, which offers investors an opportunity to achieve attractive financial returns while advancing the conservation and sustainable development of the Amazon region. By funding projects that protect biodiversity, strengthen forest governance, and promote inclusive livelihoods the Amazonia Bond exemplifies how capital markets can deliver measurable impact alongside long-term value for investors.”
Jake Harper, Senior Investment Manager, Asset Management at L&G stated: “We are proud to support the world’s first Amazonia bond alongside the Inter-American Development Bank and Crédit Agricole CIB, reinforcing our commitment to nature conservation and sustainable development in emerging markets. Our Nature & Social Outcomes strategy demonstrates the diverse range of assets pension capital can invest in, aiming to unlock vital financing and deliver value for retirement members.”
“The combination of attractive relative valuation, the critical and distinct nature of the underlying eligible projects and IDB’s strong impact reporting made this an exciting transaction for us to participate in,” said Stephen M. Liberatore, Head of ESG/Impact – Global Fixed Income at Nuveen.
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