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Natura\’s Sustainability-Linked Bond 2024

Afghanistan’s mineral wealth could become the foundation of long-term national prosperity, but only if institutional design turns geological assets into credible economic systems.

National Opportunity
A major untapped endowment of copper, iron ore, lithium, rare earths, and gold.

Structural Challenge
Weak institutional architecture has prevented mineral wealth from becoming durable prosperity.

Financing Pathway
Transparent licensing, sovereign revenue stewardship, and infrastructure-led development.

Afghanistan’s mineral endowment could become the basis of a new national development model, but only if licensing, sovereign revenue stewardship, and infrastructure are designed to turn buried assets into durable prosperity.

The future of Afghanistan may depend less on the minerals beneath its soil than on the quality of the institutions, structures, and ambitions built above it.

Preeti Sinha

Introduction

Natura Cosméticos S.A., a Brazilian multinational in the cosmetics industry, has long been committed to sustainability. In line with its environmental and social goals, Natura issued a sustainability-linked bond (SLB), a financial instrument that ties the cost of capital to specific sustainability performance targets (SPTs). This innovative bond attracted investment from notable institutions, including the International Finance Corporation (IFC) and the Inter-American Development Bank (IDB).

Natura issued a sustainability-linked bond (SLB) as a financial instrument that ties the cost of capital to specific sustainability performance targets (SPTs).

Financial Structure of the Sustainability-Linked Bond

This is the first SLB with sustainability performance targets linked to Amazon sourcing in Brazil, and Natura\’s 13th debenture issuance, closing with the total amount of BRL 1.32 billion

Bond Details

  • Total Issuance: BRL 1.32 billion (approximately USD 270 million)
  • IDB Invest Investment: BRL 200 million (approximately USD 40 million)
  • IFC Investment: BRL 300 million in the Sustainability Linked Bond (SLB) issued by Natura in the form of debentures.

Monitoring and Reporting

Natura has established a comprehensive framework for monitoring and reporting progress towards its SPTs. This framework includes:

  • Annual Reporting: Natura commits to publishing an annual report detailing its progress on each SPT. These reports will be audited by an independent third party to ensure accuracy and transparency.
  • Adjustment Mechanism: Should Natura fail to meet any of the SPTs, a step-up mechanism will increase the bond\’s coupon rate by 0.50%, thereby aligning the company\’s financial incentives with its sustainability commitments.

Objectives and Focus

The bond is designed to support Natura’s sustainability strategy, particularly its efforts to develop bio-ingredients sourced from Amazonian biodiversity. This initiative aligns with the IDB Amazonia Forever program, which aims to enhance the sustainable use of the Amazon’s resources, ensuring both conservation and economic benefits for local communities.

The deal was structured in two stages. The company, which has 44 Amazonian bio-inputs in its catalog, must reach 47 ingredients by 2025. By 2027, the goal is to achieve 49 ingredients.

If the company fails to achieve the targets, it should pay a premium to investors, of 0.15 percentage points at the end of the first verification and 0.3 points at the end of the second verification. The interest rate involved in the deal is equivalent to the CDI (the interbank deposit rate, used as an investment benchmark in Brazil) plus 1.2%.

Key Commitments

  • Development of Bio-Ingredients: Expansion from 44 to 49 bio-ingredients by 2027.
  • Forest Conservation: Preservation of 2.2 million hectares of forest in partnership with over 10,000 local families.

Impact and Benefits

The targets were announced by Natura in September 2023 as part of the “Visão 2030” program, launched in 2020. Last year, the program was reviewed and expanded after meeting part of the targets. Four years ago, the goal was to work with 34 Amazon communities in the company’s supply chain. The company exceeded that target. It currently works with 41 partner communities. By 2030, the goal is to increase the purchase of Amazon inputs by four.

Environmental Impact

  • Biodiversity Conservation: The bond supports the sustainable harvesting of bio-ingredients, promoting the conservation of the Amazon’s rich biodiversity.
  • Forest Preservation: Commitment to preserving vast tracts of Amazonian forest, mitigating climate change impacts.

Social Impact

  • Community Empowerment: Strengthening local communities by creating sustainable economic opportunities through bio-ingredient production and sustainable agroforestry systems.

Economic Impact

  • Sustainable Bioeconomy: Promoting a sustainable bioeconomy that balances economic growth with environmental conservation, enhancing Brazil’s leadership in this sector.

Second-Party Opinion and Compliance

Bureau Veritas Brasil provided a second-party opinion, confirming the bond’s alignment with the International Capital Market Association (ICMA) Principles and the International Loan Market Association (LMA) Principles. This ensures adherence to best practices in sustainable finance.

Conclusion

The issuance of the sustainability-linked bond by IDB Invest and Natura represents a significant milestone in sustainable finance, demonstrating how corporates and financial markets can be leveraged to support environmental and social objectives. By investing in bio-ingredients from the Amazon, this bond not only contributes to biodiversity conservation but also fosters sustainable economic development and social inclusion in one of the world’s most vital ecosystems.

How can other companies in similar industries leverage sustainability-linked bonds to align their financial goals with environmental and social commitments, and what lessons can be learned from Natura\’s approach to monitoring and achieving sustainability performance targets?

Newswire:

For more details, visit the Natura website.

For more details, visit the IDB Invest website.

For more details, visit the IFC website.

Press Release: IDB Invest Supports Natura in a Sustainability-Linked Bond Focused on Bio-Ingredients from the Amazon Region

Afghanistan’s Mineral Future: From Buried Wealth to National Architecture

For much of the modern era, Afghanistan has been interpreted through the language of conflict, fragility, and geopolitics. Yet beneath that familiar narrative lies a different national reality: one of the most underdeveloped mineral endowments in the world.

Its mountains and terrain are believed to hold significant deposits of copper, iron ore, lithium, rare earth elements, gold, and other strategic minerals. At a time when electrification, battery storage, and industrial supply-chain security are becoming central to the global economy, these resources are no longer peripheral. They sit close to the heart of the next industrial era.

But Afghanistan’s mineral story is not fundamentally about geology.

It is about whether a nation can build the institutional, financial, and infrastructural architecture required to transform buried wealth into enduring prosperity.

Natural resources on their own do not create development. In many countries, they have produced volatility, elite capture, fiscal distortion, and missed national potential. Where resource wealth has been translated into long-term strength, success has rarely come from extraction alone. It has come from design.

Three foundations matter.

The first is a transparent and credible licensing regime. Without it, capital remains short-term, speculative, or politically distorted. With it, a country can begin to attract serious long-horizon partners while protecting national interest and public legitimacy.

The second is sovereign revenue architecture. Resource wealth must be governed through institutions capable of channeling proceeds into infrastructure, education, productive systems, and long-term national reserves rather than immediate fiscal depletion. A country that extracts without stewarding simply liquidates its future.

The third is physical economic infrastructure. Mineral deposits become economically meaningful only when they are connected to power, transport, logistics, processing capacity, and regional trade routes. Without these systems, resource wealth remains stranded beneath the ground, technically valuable but nationally unrealized.

Afghanistan’s challenge has not been the absence of assets. It has been the absence of the systems required to convert those assets into broad-based development.

Yet this is precisely why the opportunity remains so large.

Because the sector is still underdeveloped, Afghanistan is not locked into a mature but failing model. It still has the possibility of first-principles design. A serious mineral strategy could serve as the anchor of a wider national blueprint, linking extraction to infrastructure investment, domestic industrial formation, and regional transport corridors connecting Central and South Asia.

This is where the question becomes larger than mining.

The deeper issue is whether Afghanistan can create a credible economic architecture above the mineral base: institutions that inspire trust, capital structures that support long-term development, and national systems that ensure resource wealth strengthens the country rather than fragments it.

Afghanistan’s mineral endowment should not be understood merely as a buried stock of commodities. It should be understood as a strategic national platform, one that could help finance infrastructure, expand industrial capacity, deepen regional integration, and reshape the economic horizon of the country.

The future of Afghanistan may depend less on the minerals beneath its soil than on the quality of the institutions, structures, and ambitions built above it.

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