Latin America is rich in natural resources, making it a powerhouse for sustainability. About 620 million people live in the region, or about 7.7% of the world’s population. With an urbanization rate of over 80%, the transition to a more sustainable economy presents opportunities and challenges.
According to the International Energy Agency, Latin America’s share of renewable energy generation in 2023 was 60%, with hydropower alone accounting for 45% of the electricity supply. The region is expanding biofuel and clean energy production and is projected to be a key clean-hydrogen export zone by 2030, which will ultimately help unlock economic growth. Many Latin American banks have been integral to this process.
The region is the world’s largest net exporter and produces most of the world’s food, and agriculture accounts for a significant part of the Latin American economy. The region’s sustainable agriculture practices are becoming more critical as countries strive to cultivate a nutritious food supply for their populations despite climate change and supply chain disruptions.
Agriculture relies heavily on natural resources. Latin America contains a quarter of the world’s forests, a third of its fresh water, and around 60% of global terrestrial life, plus diverse freshwater and marine species. Maintaining these natural resources is a priority. Deforestation, for example, disrupts water supplies and leads to soil erosion. Higher temperatures and unpredictable weather patterns make growing certain crops and producing livestock difficult. Many banks address these challenges through their ESG frameworks and policies and their sustainable products and services.
BTG Pactual
Best Bank for Sustainable Finance
Sustainable Finance Deal of the Year
Best Impact Investing Solution
Circular Economy Commitment Award
Best Bank for Sustaining Communities
BTG Pactual has driven growth through its commitment to sustainable practices and transition to a low-carbon economy. Of the bank’s many initiatives and projects, we recognize its work on the Águas do Rio SPT “Saneamento para Todos” (sanitation for all) transaction as our Sustainable Finance Deal of the Year. This transaction privatized the water and sewage services provided by the Companhia Estadual de Águas e Esgotos via an auction won by the Águas do Brasil Consortium in April 2021. Águas do Rio is Brazil’s largest investment in basic sanitation and provides services to about 10 million people with more than 37 billion Brazilian reais (about $6.5 billion) in socioeconomic benefits. This year marked the fourth issuance and concluded the project’s financing with an estimated capital expenditure of 24.4 billion reais and a grant of 15.4 billion reais.
The bank was lead bookrunner and financial adviser for the Barueri Energia Renovável green bond issuance that financed the first waste-to-energy project in Brazil. This plant will process about 870 tons of trash daily by combusting municipal solid waste or organic matter and using the resulting steam to heat a boiler and generate electricity. The plant will have an installed capacity of 20 MW. This issuance was a significant milestone in waste management and renewable energy in Latin America, transforming urban waste into sustainable energy that serves an urban population and contributes to the circular economy.
Scotiabank
Best Bank for Sustainable Infrastructure/Project Finance
Best Bank for Sustainability Transparency
Scotiabank provides its clients and their communities with services focused on delivering sustainable growth and maximizing shareholder value. The bank’s specialized investment products and resources are geared toward clients interested in sustainable or responsible investing.
The bank is one of the region’s top bookrunners for green, social, and sustainability bonds, the proceeds of which have financed many large infrastructure projects throughout Latin America. The bank was the global coordinator, joint bookrunner and deal manager for a $500 million green bond for the Chilean utility company AES Andes, its first green bond in four years. This is the first deal under the updated framework that addresses energy storage, green hydrogen production, infrastructure, and charging stations.
Renewable energy producer Grenergy’s biggest financing to date was the $344 million green loan used to finance the construction and development of two phases of the Oasis de Atacama project, the world’s largest renewable energy storage project. Scotiabank held various roles in this transaction, including that of a lender. Scotiabank was also the bookrunner, lead arranger, and green loan coordinator for this syndicated loan, the first for a hybrid battery energy storage system project of this scale. This $1.4 billion project is intended to support sustainable power for 145,000 homes and reduce annual CO2 emissions by 146,000 metric tons.
Itaú BBA
Best Bank for Sustainable Financing in Emerging Markets
Best Bank for ESG-Related Loans
Best Bank for Transition/Sustainability-Linked Loans
Itaú BBA’s commitment to sustainable development is reflected in a strategy incorporating environmental, social, and climate initiatives. The bank’s sustainable development involves financing positive impact sectors, structuring ESG operations, and providing ESG products. Itaú met its 2021 commitment of 400 billion reais by 2025 through sustainable business initiatives, with Itaú BBA responsible for 84%, or 353 billion reais. Itaú’s new objective is to add 600 billion reais to this goal and mobilize 1 trillion reais in sustainable finance by December 2030.
The bank advised Vibra Energia, Latin America’s largest distributor and marketer of petroleum derivatives and biofuels, on decarbonization and climate transition through a 1.5 billion real green and transition bond. The bank also supported sustainable construction initiatives through its Green Entrepreneur Plan, which provides financing to residential and commercial projects in Brazil that leverage sustainable building techniques and resources.
Agriculture generates about 26% of Brazil’s greenhouse gas emissions. This requires balancing economic growth and food production with sustainability. Citrosuco is a global orange juice producer that has embraced many sustainable practices on its farms and a robust decarbonization plan. The bank structured a sustainability-linked loan that aligns key targets with Citrosuco’s corporate strategy to lead the value chain with an 82% sustainable fruit supply by engaging more third-party producers and reducing CO2 emissions related to industrial practices and operational efficiency.
Bradesco BBI
Best Bank for Green Bonds
Best Bank for Social Bonds
Best Bank for Sustainable Bonds
Bradesco BBI has already achieved its goal of mobilizing 250 billion reais in sustainable finance by 2025 and has increased that goal to 320 billion reais over the same period. The bank is the first in Brazil to target net-zero carbon emissions by 2050.
The bank has structured many bonds that focus on sustainability. It was actively involved in structuring green bonds for one of the world’s largest energy companies, Raízen. The proceeds from these bonds fund projects for renewable energy, such as sugarcane ethanol biofuel and biomass cogeneration, energy efficiency, and clean transportation.
Bradesco was the bookrunner and ESG coordinator of 200 million reais in social bonds issued by Mottu, a Brazilian motorcycle rental company and last-mile delivery marketplace. Mottu targets low-income and minority populations within Brazil.
Órigo Energia is a renewable energy company with over 100 solar farms in Brazil. The bank helped Órigo Energia to issue 600 million reais of commercial notes. These proceeds will be used to build photovoltaic distributed energy generation plants. The bank was also the lead and ESG coordinator for Scala Data Centers’ approximately 1.4 billion reais of green debenture. Scala Data Center is a hyperscale sustainable data center platform, and the issuance proceeds will be used for energy efficiency projects, renewable energy, and green buildings.
| Regional Winners: Latin America | |
|---|---|
| Best Bank for Sustainable Finance | BTG Pactual |
| Sustainable Finance Deal of the Year | BTG Pactual (Águas do Rio SPT “Saneamento para Todos” financing conclusion) |
| Best Impact Investing Solution | BTG Pactual |
| Circular Economy Commitment Award | BTG Pactual |
| Best Bank for Sustainable Infrastructure/Project Finanace |
Scotiabank |
| Best Bank for Sustainable Financing in Emerging Markets |
Itaú BBA |
| Best Bank for Green Bonds | Bradesco BBI |
| Best Bank for Social Bonds | Bradesco BBI |
| Best Bank for Sustainable Bonds | Bradesco BBI |
| Best Bank for Sustaining Communities | BTG Pactual |
| Best Bank for ESG-Related Loans | Itaú BBA |
| Best Bank for Sustainability Transparency | Scotiabank |
| Best Bank for Transition/Sustainability-Linked Loans | Itaú BBA |
