Sustainable Finance Awards 2026: Latin America

There has been steady progress in Latin America towards a sustainability agenda. Since the region’s first bond was issued in 2014, more than $164 billion has been raised in international markets, according to the UN Economic Commission for Latin America and the Caribbean. Despite these gains, an annual funding gap of $650 billion needs to be closed to meet the UN’s SDGs by 2030. Currently, only 23% of these goals appear achievable, and the remaining goals are on hold unless rapid progress is made.

According to the World Economic Forum, 70% of the region’s electricity is provided by renewables, including solar, wind, and hydropower. However, many economies still export fossil fuels and minerals while importing refined oil and gas, creating a complex situation.

The region is also becoming a global leader in green finance markets, with prominent Latin American banks issuing some of the largest green bonds and developing green loan structures, both of which finance clean water and sanitation projects. To promote a green economy in the region, the Development Bank of Latin America and the Caribbean plans to invest 2.5 billion dollars in the green economy by 2030 to increase conservation efforts and promote economic growth.

Many successful banks this year are working with customers to support the clean energy transition. In this spirit, these banks continue to innovate as Latin America becomes a more sustainable region.

BTG Pactual

Best Bank for Sustainable Finance

Sustainable Finance Deal of the Year: EcoRioMinas – Green Transition Bonds

Best Bank for Continuous Clearing

Brazil’s BTG Pactual is one of the most 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 reach this goal by 2023. Despite high interest rates and companies reviewing ESG strategies, BTG Pactual is building nearly $2 billion of eight bonds labeled green, blue, sustainability, and green.

Brazil’s infrastructure is increasingly challenged to demonstrate measurable climate commitment, and a rapidly evolving financial transition market is making credible long-term decarbonization strategies a reality while providing investors with transparency and accountability for emissions. BTG Pactual worked with EcoRioMinas to organize one of the first green transition bonds in Brazil.

This release of 540 million Brazilians (about 104.4 million dollars) finances projects focused on changes, such as renewable energy, LED lighting systems, paving-material reuse, and reforestation and landscape restoration programs. This transaction addresses the highway’s environmental footprint by increasing energy efficiency and reusing existing resources to reduce consumption.

BTG Pactual also raised 542 million reais for an impact investment fund for private investments in SMEs. The bank launched an ESG bond fund and aims to raise $100 million to be dedicated to sustainable finance. BTG has also been chosen to manage the Espírito Santo Decarbonization Fund, which received 500 million reais from Brazil’s sovereign wealth fund to finance low-carbon projects.

BancoEstado

Best Impact Investing Solution

The Best Bank for Community Support

BancoEstado aims to generate long-term value and help improve Chile’s commitments on climate change. In particular, the bank is working towards reaching net-zero by 2030 for operational emissions and by 2050 for capital production.

The bank equips citizens with the Social Leaders Academy, which provides training to leaders so they can educate communities on how to find housing and support small businesses. This educational model improves living standards throughout Chile by strengthening the right to adequate housing.

BancoEstado’s Impacto Verde initiative promotes inclusive economic development by connecting MSMEs with large companies. This partnership ultimately strengthens Chile’s business environment by strengthening supply chain standards and increasing MSMEs’ access to banking services. The program also promotes shared growth between companies and MSMEs and provides startups with products and services that are best suited to small businesses.

In its work to stabilize communities, the bank has provided infrastructure finance through products linked to change and sustainability. These products have financed electric buses for new public transport fleets and unconventional renewable energy plants, for example. These ESG loans are targeted at companies that measure social and environmental factors, and the loan rate is adjusted based on compliance with these indicators. These features are mainly focused on reducing water consumption and greenhouse gas emissions.

BBA

Best Bank for Sustainable Infrastructure/Professional Finance

Best Bank for Blue Bonds

Best Bank for Transitional/Consolidation-Linked Loans

Itau BBA recently published its new ESG strategy focusing on climate change, diversity, development, and sustainable finance. The bank set a new goal in 2024 of assembling 1 trillion reais of sustainable finance by December 2030. This is in line with the green taxonomy of the Federation of Brazilian Banks, Febraban, and includes internal ESG criteria and leading international frameworks.

The bank has partnered with Bracell, a global producer of specialty cellulose, on a sustainability-linked loan with targets to be met by 2030 or face financial penalties. These goals include a 28% reduction in greenhouse gas emissions, a 19.3% reduction in water consumption, and an 81.8% reduction in landfill waste. The loan helps Bracell meet broader commitments to reduce its carbon footprint, increase efficiency through clean technology, and support biodiversity. This partnership serves to highlight the drive to promote industrial practices that drive economic growth while contributing to environmental conservation.

The bank also acted as co-bookrunner for Aegean’s $750 million blue bond issuance, one of the largest in the international market. These funds are earmarked for water supply infrastructure, sewage collection, and marine environment protection. This transaction aims to provide access to water to 99% and sanitation systems to 90% of the population by 2033.

Bradesco BBI

Best Bank for Green Bonds

Best Bank for public bonds

Best Bank for Sustainability Bonds

Bradesco BBI is known for its diversity, respect and racial equality. The bank initially set a goal of mobilizing 250 billion reais in sustainable finance by 2025 and has since expanded that goal to 350 billion over the same period. This was achieved by September 2025. During the year, the bank completed 17 ESG projects including nine green bonds, two social bonds, and five sustainability bonds.

Bradesco also worked to establish new programs, such as the Eco Invest Program led by the Brazilian National Treasury and aimed at attracting foreign investors to the country’s environmental transformation projects. Bank and energy company Neoenergia, a subsidiary of Brazilian Iberdrola, completed the first green bond issuance under the program, raising 1 billion reais in operations. The proceeds will be used to modernize Brazil’s electricity infrastructure.

This project will include installing smart grids; burying the lines underground to protect them from the weather; and developing substations, transmission lines, and distribution networks. Re.green received 80 million reais from Brazil’s Climate Fund in a landmark project with a biodiversity label for which Bradesco provided a guarantee letter and ESG advisory services. Re.green focuses on restoration efforts that improve the sustainability of ecosystems where that area has been damaged, destroyed, or degraded. These funds will be used to reforest 15,000 hectares in key areas.