Brazil's third Eco Invest auction to unlock $10.2 billion in equity investment

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Brazil's latest Eco Invest auction, aimed at drawing foreign equity into innovation and sustainability projects, is expected to unlock about 53 billion reais ($10.2 billion) in total equity investments, the Finance Ministry said on Wednesday.The auction secured 15 billion reais in approved public "catalytic capital", the ministry added in a statement. Catalytic capital accepts higher risks, lower returns or longer time horizons to fund social and environmental goals.KEY DETAILSSix financial institutions won bids, led by lender Itau BMFBOVESPA:ITUB3 with nearly 30 billion reais in its portfolio. State lender Caixa Economica Federal secured a 9 billion-real investment portfolio. Bradesco BMFBOVESPA:BBDC3, HSBC, Banco do Brasil BMFBOVESPA:BBAS3 and development bank BNDES also secured allocations.The institutions have up to 24 months to mobilize foreign capital and 60 months to deploy funds into target projects.The government estimates approved bids in the auction equal 32.5% of all private equity and venture capital investment in the country between October 2024 and September 2025.CONTEXTThis was the third Eco Invest auction, and the first to offer a foreign-exchange hedge, made possible by channeling Brazil's Climate Fund resources to financial institutions to structure FX and performance risk-hedging instruments.The Eco Invest program was launched under leftist President Luiz Inacio Lula da Silva to attract foreign capital to long-term sustainable projects.Brazil held the first Eco Invest auction in October 2024, followed by a second in August 2025.The three auctions combined are expected to mobilize roughly 127 billion reais for Brazil's ecological transition, the government said. The Treasury announced in November it would hold a fourth auction focused on the Amazon rainforest and strengthening the country's bioeconomy. ($1 = 5.1969 reais)

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