Natura raises BRL 700 million via sustainability-linked debentures

On 18 September 2026, Natura Cosméticos issued BRL 700 million in five-year debentures structured as sustainability-linked bonds. The transaction links borrowing costs to targets for increasing recycled and renewable plastic in product packaging for the Natura and Avon brands.

The debentures carry an initial rate of CDI plus 1.10% per year. Natura committed to lifting sustainable plastic packaging share from a 2022 baseline of 21% to 43% in 2028 and 46% in 2029, alongside a public goal of 50% by 2030. Missing the 2028 target triggers a 0.20 percentage point step-up, while missing the 2029 target adds another 0.25 percentage point, lifting the rate to CDI plus 1.55% if both are missed.

The issue was fully subscribed by a single unnamed financial institution for professional investors and carries a second-party opinion from Moody's. Coordinator UBS BB noted it is Brazil's first corporate debenture aligned with the ICMA nature bond guidelines. The operation raises Natura's share of ESG-linked debt to 65%.

Natura previously issued a $1 billion SLB in 2021, reaching 30% post-consumer recycled plastic by 2025 versus its 25% target for 2026. In 2024, it issued BRL 1.3 billion in SLBs tied to Amazon bio-ingredients, reaching 52 ingredients in 2025 ahead of its 2027 goal of 49. In the second quarter of this year, Natura held BRL 3.86 billion in net debt, with net debt to EBITDA leverage at 2.06 times.