The Inter-American Development Bank (IDB) has issued its first Amazonia Bond of 2026, raising a record AU$1 billion in what marks the bank’s largest-ever single-tranche bond in the Australian dollar market. Proceeds will be used to finance sustainable development projects across the Amazon region.
The transaction is the second under the Amazonia Bond programme launched in 2025, reflecting the IDB Group’s strategy to mobilise capital markets to support conservation, economic opportunity and community development in the Amazon basin.
The bond is structured in line with the Amazonia Bond Issuance Guidelines, co-developed by the IDB and the World Bank, as well as the IDB’s Sustainable Debt Framework. These frameworks set requirements on the use of proceeds, impact measurement and transparency.
Ilan Goldfajn, president of the IDB Group, said the issuance demonstrated how capital markets could support conservation and development at scale. He added that issuing the bond in Australian dollars highlighted the global importance of protecting the Amazon and investors’ willingness to provide long-term capital for the region.
The bond pays a semi-annual coupon of 4.60% and matures on 21 July 2031. It was priced at a spread of 39 basis points over the semi-quarterly asset swap, equivalent to 38.9 basis points over the Australian Government Bond due in June 2031. Final order books exceeded AU$3.5 billion, including AU$400 million from joint lead managers.
The Amazonia Bond programme forms part of Amazonia Forever, the IDB Group’s regional coordination platform aimed at advancing conservation and sustainable development across the eight Amazon countries through innovative finance, improved data and regional cooperation.
Jimmy Choi, global head of capital markets at ANZ, described the deal as a significant milestone that would help unlock private capital for environmental, social and economic development in the Amazon region, while strengthening the IDB’s presence in the Kangaroo market.
Keiji Machida, chairman and chief executive of Daiwa Capital Markets America Inc., said the transaction showed how well-structured bond issuances could channel global liquidity to priority regions, adding that strong investor demand reflected confidence in both the IDB and its Amazonia initiative.
Jonathan Hunter, head of global markets at RBC Capital Markets, said the depth of demand underlined the IDB’s standing as a leading issuer in the Kangaroo SSA market and highlighted investor appetite for AAA-rated instruments dedicated to sustainable development in the Amazon.
