AGRI3 Fund closes transactions in Brazil and China
22 December 2020
The AGRI3 Fund, initiated by UN Environment Programme (UNEP) and Rabobank, has just closed two transactions with de-risking by the fund in China and Brazil. The investments of the fund focus on farms that pursue more sustainable practices, including forest protection and improving rural livelihoods. FOUNT.eu, Mirova and Cardano Development worked together as investment advisors to these transactions of the AGRI3 Fund.
The investment in Brazil (USD 5 mln, 10 years) is linked to forest protection and renovation of degraded pastureland in Mato Grosso. This investment will make it possible for Grupo Carvalho Dias in Brazil to grow more sustainably. A new transaction provides financing for forest replanting, forest protection (2581 ha) and renovation of degraded pastureland (1200 ha) in line with recognized E&S guidelines, which will enable cattle growth without clearing new land.
The investment in China (USD 10 mln, 3 years) is linked to sustainable pepper farming in the larger Chongqing region. By providing access to financing, training and high-quality inputs and by selling at a guaranteed price, this loan helps to enable farmers to switch from poor yielding crops to more lucrative and sustainable pepper cultivation. This can increase the income of potentially 80,000 farmers.
Read the full press release of The Rabobank:
Rabobank closes transactions with de-risking by AGRI3 Fund