Sustainable Finance Awards 202

There has been steady progress toward the sustainability agenda in Latin America. Since the region’s first green bond issuance in 2014, more than $164 billion has been raised in international markets, according to the United Nations Economic Commission for Latin America and the Caribbean. Despite these gains, a $650 billion annual funding gap needs to be closed to meet the UN SDGs by 2030. Currently, only 23% of these targets are likely to be achieved, and the remaining targets are stagnant unless accelerated progress is made.

According to the World Economic Forum, 70% of the region’s electricity is supplied by renewable energy, including solar, wind and hydropower. Nevertheless, many economies still export fossil fuels and minerals while importing refined fuels and gas, creating a complex scenario.

The region is also becoming a global leader in blue-finance markets, with major Latin American banks issuing some of the largest blue bonds and developing frameworks for blue loans to finance both clean water and sanitation projects. To enhance the blue economy within the region, the Latin America and Caribbean Development Bank plans to invest $2.5 billion in the blue economy by 2030 to boost conservation efforts and stimulate economic growth.

Many of this year’s winning banks work with customers to support the transition to clean energy. In this spirit, these banks are constantly innovating as Latin America becomes a more sustainable region.

BTG Pactual

Best Bank for Sustainable Finance

Sustainable Finance Deal of the Year (Ecorominas – Green Transition Bond).)

Best Bank for Sustainability Transparency

Best Banks for ESG-Related Loans

Brazil-based BTG Pactual is one of the more innovative banks within the sustainable-finance market. In 2020, the Bank committed to a tenfold increase in the volume of ESG bonds issued by 2025 and to achieve this target in 2023. Despite higher interest rates and corporations rethinking ESG strategies, BTG Pactual structured nearly $2 billion in eight labeled green, blue, sustainability and green transition bonds.

Brazil’s infrastructure is increasingly challenged to demonstrate measurable climate commitments, and the rapidly developing transition-finance market advances credible long-term decarbonization strategies into reality while providing investors with transparency and accountability regarding emissions. BTG Pactual worked with Ecoreominas to structure one of the first green transition bonds in Brazil.

This issuance of 540 million Brazilian reals (about $104.4 million) is to finance transition-oriented projects such as renewable-energy facilities, LED lighting, flooring-material reuse, and reforestation and landscape restoration initiatives. This transaction addresses the highway’s environmental footprint by expanding energy efficiency and reusing existing resources to reduce consumption.

BTG Pactual also raised 542 million reais for an impact-investment fund for private equity investments in SMEs. The bank has launched an ESG bond fund and intends to raise $100 million which will be dedicated to sustainable finance. BTG was also selected to manage the Espirito Santo Decarbonization Fund with 500 million reais from Brazil’s sovereign fund to finance low-carbon projects.

bancoestado

Best Impact Investing Solutions

Best Banks for Sustainable Communities

BancoEstado aims to generate long-term value and help advance Chile’s commitments on climate change. Specifically, the Bank is working towards net-zero by 2030 for operational emissions and by 2050 for financed emissions.

The bank empowers citizens through its Social Leaders Academy, which provides training to leaders so they can teach communities how to access housing and support micro-entrepreneurs. This educational model improves living standards throughout Chile by strengthening the right to adequate housing.

BancoEstado’s Impacto Verde initiative promotes inclusive economic growth by connecting MSMEs with large corporations. These relationships ultimately strengthen Chile’s business ecosystem by strengthening supply chain standards and expanding MSMEs’ access to banking services. The program also promotes shared growth between corporations and MSMEs and provides startups with products and services better suited for small businesses.

In its work to sustain communities, the Bank has provided financing for infrastructure through transition and sustainability-linked products. For example, these products have financed electric buses for new public transit fleets and non-conventional renewable-energy plants. These ESG loans are for companies that measure social environmental factors, and the loan rate is adjusted based on compliance with these indicators. These factors primarily focus on reducing water use and greenhouse gas emissions.

itau bba

Best Bank for Sustainable Infrastructure/Project Finance

Best Bank for Blue Bonds

Best Banks for Transition/Stabilization Loans

Itau BBA recently published its new ESG strategy based on climate change, diversity, development and sustainable finance. The bank has set a new target of raising 1 trillion reais in sustainable finance in 2024 by December 2030. It aligns with the green taxonomy of Fabraban, the association of Brazilian banks, and integrates internal ESG criteria and leading international frameworks.

The bank partnered with Brussels, a global producer of cellulose, specialized in sustainability-linked loans, which must be met by 2030 or face financial penalties. These goals include a 28% reduction in greenhouse gas emissions, a 19.3% reduction in water use, and an 81.8% reduction in landfill waste. The loan helps Brussels meet broader commitments to reduce its carbon footprint, increase operational efficiency with clean technologies and support biodiversity. The partnership works to highlight initiatives that promote industrial practices that promote economic growth while contributing to environmental protection.

The bank also acted as joint bookrunner in Aegea’s $750 million blue bond issuance, one of the largest in the international market. The funds are earmarked for water supply, sewage collection and infrastructure to protect marine ecosystems. The goal of this transaction is to provide access to water for 99% of the population and access to sewage systems for 90% of the population by 2033.

Bradesco BBI

Best Banks for Green Bonds

Best Bank for Social Bonds

Best Banks for Sustainability Bonds

IBradesco BBI has been recognized for its diversity, respect and racial equality. The bank initially aimed to raise 250 billion riyals in sustainable finance by 2025 and has increased that target to 350 billion riyals over the same period. This was achieved in September 2025. During the year, the Bank completed 17 ESG transactions which included nine green bonds, two social bonds and five sustainability bonds.

Bradesco has also worked to establish innovative programs such as the Eco Invest Program, which is led by the Brazilian National Treasury and aims to attract foreign investment to the country’s ecological transformation projects. Bank and power utility Neoenergia, the Brazilian subsidiary of Iberdrola, completed one of the first green bond issuances under the program, raising 1 billion reals in the transaction. The proceeds will be used to modernize the electricity infrastructure within Brazil.

The work will include setting up smart grids; burying lines underground to protect against climate risks; and upgrading substations, transmission lines and distribution networks. Re.Green secured 80 million reais from the Brazilian Climate Fund in a landmark biodiversity-labeled transaction, with Bradesco providing a guarantee letter and ESG advisory services. Re.green focuses on restoration efforts that promote the recovery of an ecosystem when that area has been damaged, destroyed, or degraded. These funds will be used for reforestation of 15,000 hectares in priority areas.