IDB Invest commits $15m to the SA Impact Forestry Fund II
- 5 hours ago
- 2 min read
We are proud to share a strong vote of confidence in the development of a sustainable forestry industry in Paraguay. IDB Invest has committed $15m to the SA Impact Forestry Fund II (SAIFF II), alongside blended finance support from the Finland-LAC Blended Finance Climate Fund and the Canadian Net Zero and Climate Resilience Accelerator Fund.
SAIFF II, which is on target to raise over $200 million, builds on the success of the first fund, which closed at $325m in April 2024 and was more than 50% oversubscribed with investors from more than 30 countries and all five continents.
The strategy focuses on acquiring degraded land and transforming it into sustainably managed, FSC® certified forests, combining commercial timber production with ecosystem restoration and long-term stewardship. The fund is expected to expand the total land portfolio to 120,000 hectares, with approximately 93 million trees planted and 25 million tCO₂ sequestered over the life of the assets. The project has received Verra approval for the registration and verification of the first issuance of VCUs, with the first carbon credits already sold, and has ben assigned a BeZero Carbon ex-ante rating of BBB.pre with “Very Low” execution risk (January 2026).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.
About the Finland–Latin America and the Caribbean Blended Finance Climate Fund
The Finland-LAC Blended Finance Climate Fund is a trust fund supported by the Government of Finland, aimed at catalyzing greater private investment in climate change adaptation and mitigation in Latin America and the Caribbean, with an emphasis on poor and vulnerable countries and communities, gender equality, diversity, inclusion, and biodiversity.
About the Canadian Net Zero and Climate Resilience Accelerator Fund
The Canadian Net Zero and Climate Resilience Accelerator Fund is a fund administered by the Inter-American Development Bank. Its purpose is to strengthen climate resilience and reduce greenhouse gas emissions in Latin America and the Caribbean through new technologies, innovative business models, and nature-based solutions, while promoting gender equality, diversity, and inclusion.
Read the full IDB announcement here:
