The Inter-American Development Bank (IDB), National Bank for Economic and Social Development of Brazil (BNDES), Bank of Brazil (BB), and CAIXA Econômica Federal (CAIXA) are set to create a new exchange-traded fund (ETF) to be listed on Brazil’s B3 stock exchange, aimed at financing sustainable investments in the Amazon.
The Amazonia for All ETF is designed to broaden access to sustainable investments by combining financial resources with performance-based incentives, targeting a diverse investor base both domestically and internationally. The goal is to establish and distribute shares of the ETF on the capital market before COP30, which will be held in Belém, Pará, in 2025.
The ETF will channel funds from BNDES, BB, and CAIXA’s fixed-income assets into sustainable loans within Brazil’s Amazon region. It will track a new benchmark index that is yet to be established.
An ETF was chosen for its accessibility to both small and large investors and its liquidity, as shares are traded on stock exchanges. The target price for shares will be approximately R$ 100.00 ($17.65), allowing broad participation.
ETFs are advantageous because their index providers typically disclose portfolio compositions daily, giving investors clear insights into their investments. Additionally, the widespread use of ETFs in global markets facilitates promotion and trading through international investment platforms.
A letter of intent for the Amazonia for All ETF was signed by IDB President Ilan Goldfajn; BB’s Vice-President of Business Government and Corporate Sustainability, José Ricardo Sasseron, representing President Tarciana Medeiros; CAIXA’s Vice-President of Sustainability and Digital Citizenship, Paulo Rodrigo Lopes, representing President Carlos Vieira; and BNDES’s Director of People, Management, and Operations, Helena Tenorio, representing President Aloizio Mercadante.
“A year ago, the IDB launched its holistic Amazonia Forever programme. Now, alongside our partners, we announce our plan for the Amazonia for All ETF, which will democratise investments for 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,” said 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,” said BNDES President Aloizio Mercadante.
Bank of Brazil President Tarciana Medeiros emphasised 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,” she said.
CAIXA’s president, Carlos Vieira said, “This initiative shows how cooperation can bring permanent benefits for society, especially when it comes to sustainable investments. We believe that through investment and innovation—like selecting model bio economy 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.”