RIO DE JANEIRO, July 24 (Reuters) - The Inter-American

Development Bank (IDB) and Brazil's public banks will announce

on Thursday the development of an exchange-traded fund (ETF)

focused on sustainable investments in the Amazon rainforest,

said two people with direct knowledge.

State development bank BNDES, Banco do Brasil and

Caixa Economica Federal are part of the initiative,

said the sources, who requested anonymity because plans are not

public.

The goal, according to the sources, was to launch the

"Amazonia Brasil" ETF in capital markets before the COP30

climate conference in the Brazilian city of Belem next year.

The new fund is expected to replicate a yet-to-be-created

benchmark index, with resources allocated to sustainable loans

in the Brazilian Amazon.

Banco do Brasil, Caixa, BNDES and the IDB did not respond to

requests for comment.

Last year, BNDES and the IDB led the launch of a so-called

"Green Coalition" to promote financial solutions and encourage

sustainable investments in the region.

According to the sources, the IDB will provide technical and

financial support to the Brazilian banks for the new ETF.