Announcement to the Market - Itaú Unibanco raises R$1 billion in Green Instrument with IFC

Rhea-AI Summary

Itaú Unibanco Holding S.A. has successfully raised R$1 billion through its first issuance of Letras Financeiras Verde, partnering with the Finance Corporation (IFC), a World Bank Group member. This marks a historic first for both Itaú and the IFC in Brazil. The funds will finance electric, hybrid, and multifuel vehicles to promote a low-carbon economy. Itaú aims to allocate R$ 400 billion by 2025 for positive impact sectors. The bank is also committed to reducing emissions by 50% by 2030 and achieving carbon neutrality by 2050.

Positive

• Raised R$1 billion through Green Financial Instruments.
• First Green Financial Letter issuance in Brazil.
• Funds allocated for low-carbon vehicle financing.
• Aiming to reach R$400 billion in sustainable funding by 2025.
• Commitment to Net-Zero Banking Alliance to reduce emissions by 50% by 2030.

Negative

• None.

SÃO PAULO, April 13, 2022 /PRNewswire/ -- Itaú Unibanco Holding S.A. announces to its stockholders and the market in general that it has raised R$1 billion in green instrument denominated Letras Financeiras Verde in the local market with the Finance Corporation (IFC), member of the World Bank Group. It is Itaú's first Letra Financeira Verde issuance and the first time IFC uses this instrument in Brazil.  

The funds will be used to support the financing of electric, hybrid and multifuel vehicles, aiming at fostering the low-carbon economy and boosting the segment of low-GHG-emission vehicles in Brazil.

This funding strengthens Itaú's commitment to supporting the climate transition of its clients and promoting a more sustainable economy. From August 2019 to December 2021, R$ 170 billion was allocated in funding for positive impact sectors, ESG products and operations. The goal is to reach R$ 400 billion by 2025.

At the end of 2021, Itaú signed up to the Net-Zero Banking Alliance (NZBA), a global agreement led by the United Nations (UN), through which it commits to reduce its emissions by 50% by 2030 and to become carbon neutral by 2050.

São Paulo (SP), April 13, 2022.

RENATO LULIA JACOB 
Group Head of Investor Relations and Market Intelligence

 

 

 

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SOURCE Itaú Unibanco Holding S.A.

FAQ

What is Itaú Unibanco's recent financial initiative with IFC?

Itaú Unibanco raised R$1 billion through the issuance of Letras Financeiras Verde in partnership with IFC.

How will the funds raised by Itaú Unibanco be used?

The funds will support financing for electric, hybrid, and multifuel vehicles to promote a low-carbon economy.

What is Itaú Unibanco's sustainability goal by 2025?

Itaú aims to allocate R$400 billion for positive impact sectors by 2025.

What emissions reduction commitment has Itaú Unibanco made?

Itaú has committed to reduce its emissions by 50% by 2030 and become carbon neutral by 2050.