IFC Invests BRL 300M in Natura’s Bond to Promote Amazon Bioeconomy

IFC's investment will also boost the local economy and communities and support agroforestry sustainable supply chains in the forest.

The International Finance Corporation (IFC), a member of the World Bank Group, announced its support for Natura to promote sustainable sourcing, thereby enhancing the bioeconomy in the Amazon and contributing to the protection and regeneration of the Amazon Forest. IFC's investment will also boost the local economy and communities and support agroforestry sustainable supply chains in the forest.

IFC invested BRL 300 million in a Sustainability-Linked Bond (SLB) issued by Natura in the form of debentures. This marks the first SLB with sustainability performance targets linked to Amazon sourcing in Brazil and Natura's 13th debenture issuance, closing with a total amount of BRL 1.32 billion. As the anchor investor of this issuance, IFC also helped Natura mobilize additional funding to support investments in the Amazon.

IFC's investment will aid Natura in the development and sourcing of bioingredients from Amazon, in enhancements to manufacturing and distribution infrastructure in its operations, and in the purchase of equipment for product line updates and growth.

Silvia Vilas Boas, Natura's Finances and Strategy VP, emphasized that the new issuance is a significant step forward in strengthening the Amazon bioeconomy. This move is essential not only to combat the climate crisis but also to promote substantial economic, social, and environmental benefits to the region. "Brazil has immense potential to globally lead this business model that harmonizes income generation with environmental conservation," Silvia stated. She highlighted that one of the big challenges is to value and expand the countless small production chains rich in socio-environmental diversity that define the Amazonian region. "Widening the bioeconomy is crucial, and for that, we need to strengthen its entire ecosystem. The issuance is a powerful tool to help us reach this goal," she added.

"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," said Manuel Reyes-Retana, IFC Regional Director for South America. "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 added.