São Paulo, Brazil, July 9, 2024 – IFC, a member of the World Bank Group, has announced its partnership with Natura to advance sustainable sourcing initiatives aimed at promoting the bioeconomy in the Amazon region. This collaboration seeks to protect and regenerate the Amazon Forest while bolstering local economies and communities through sustainable agroforestry supply chains.
IFC has invested BRL 300 million in a Sustainability Linked Bond (SLB) issued by Natura in the form of debentures. This marks Brazil’s first SLB with sustainability performance targets tied to Amazon sourcing and represents Natura’s 13th debenture issuance, totaling BRL 1.32 billion. As the principal investor in this issuance, IFC has facilitated additional funding to support Natura’s investments in the Amazon.
IFC’s investment will enable Natura to enhance its capabilities in sourcing bioingredients from the Amazon, improve manufacturing and distribution infrastructure, and acquire equipment to expand and modernize its product lines.
To Silvia Vilas Boas, Natura’s Finances and Strategy VP, the new issuing is a significant step forward in strengthening the Amazon bioeconomy. This move is essential not just to fight 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”, Silvia states. She highlights that one of the big challenges is to value and expand on the countless little production chains, rich in socioenvironmental diversity and define the Amazonian region. “Widening bioeconomy is crucial and, for that, we need to strengthen all of its encompassing ecosystem. The issuing is a powerful tool to help us reach this goal,” said the executive.
“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.
