WASHINGTON - The Inter-American Development Bank (IDB) approved a $250 million financing package to support the BB Amazônia Program, a joint initiative with Banco do Brasil (BB) aimed at promoting bioeconomy businesses and expanding sustainable infrastructure in the Brazilian Legal Amazon.
The financing package includes a $175 million loan from the IDB and a $75 million loan from Green Climate Fund (GCF). The program will expand access to credit for local small bio-businesses across bioeconomy value chains, as well as for sustainable infrastructure projects focused on renewable energy and digital connectivity.
As many as 11,700 micro, small and medium-sized enterprises, producers, entrepreneurs, family rural producers, cooperatives and community enterprises are expected to benefit from greater access to credit.
Approved by the IDB’s Board of Executive Directors, the package is part of the Amazonia Forever program — the IDB’s regional strategy to scale up financing for sustainable, inclusive, and resilient development in Amazonia, with the bioeconomy as one of its central thematic pillars.
The initiative seeks to reduce long-standing financing barriers faced by micro, small, and medium-sized enterprises, family farmers, women-led businesses, and traditional populations. By investing in sustainable, forest-compatible business models, BB Amazônia will contribute directly to the conservation and restoration of the Amazon biome, income generation, and the strengthening of local value chains.
The program is expected to enhance the investment capacity of target beneficiaries by alleviating credit constraints. Given the central role these businesses play in the bioeconomy, the program will ultimately contribute to the sustainable development of the Brazilian Legal Amazon.
Expected results include increased access to credit for productive development of bio-businesses, expansion of renewable energy generation capacity distributed among different communities and improved digital connectivity in underserved regions of the Amazon. As such, the program will contribute directly to Brazil’s climate mitigation and adaptation goals.
The program also includes specific resource allocation for women bio-businesses and will support the development of an action plan to expand credit access for traditional populations, thereby promoting the financial inclusion for historically marginalized groups.
In addition to the loan, the financing package includes an $8.8 million IDB-GCF investment grant to support the implementation of a loss-coverage mechanism that will enable BB to expand lending to riskier bio-businesses.
The program will leverage BB’s extensive presence across the Amazon region, especially with the BB Bioeconomy Hub, launched in 2024, which coordinates the delivery of financial services and technical assistance to bio-businesses. The Hub is currently supported by an IDB-GCF Technical Cooperation under execution and will be pivotal to the success of the program.
The operation reinforces the strategic partnership between the IDB and Banco do Brasil in supporting economic solutions that combine development and conservation in the Brazilian Legal Amazon.
The $175 million IDB loan features a 25-year maturity, a 5.5-year grace period, and an interest rate tied to the Secured Overnight Financing Rate (SOFR). The $75 million loan has a 20-year amortization period, a 5.5-year grace period, and a fixed interest rate of 0.75%.
About the IDB
The Inter-American Development Bank (IDB) is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries.
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