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ODF Secures EUR 10 Million Loan from Invest International to Boost Organic Agriculture in Emerging Markets

November 19th

ODF Secures EUR 10 Million Loan from Invest International to Boost Organic Agriculture in Emerging Markets

Amsterdam November 19, 2024 — Organic Development Finance (ODF) is pleased to announce its first EUR 10 million senior loan agreement with prominent Dutch investor Invest International. This vital funding will expand ODF’s capacity to provide fair-priced, much-needed working capital loans to small and medium-sized enterprises (SMEs) in emerging markets that focus on aggregating and exporting organic ingredients. These companies play a crucial role in scaling sustainable agriculture and linking smallholder farmers to global markets.

A toast at the Invest International office after the signing ceremony, celebrating the new collaboration

ODF was founded by Tradin Organic, global frontrunner in the sourcing, processing and distribution of organic ingredients. As a strong promotor of long-term partnerships with its suppliers, Tradin Organic executed on its vision of adding value in its supply chains by creating a truly market-driven financing instrument, addressing the finance gap faced by many organic companies in developing countries by opening up access to capital, supporting growth and innovation.

Tradin Organic CEO Floris Wesseling: “Through ODF we can connect organic suppliers to appropriate financing, empowering them to sustainably improve their operations. This contributes to the development of their communities; economically, socially and environmentally, and leads to a more resilient supply chain. We are delighted to welcome Invest International as a partner in ODF, joining us on our mission to foster a thriving organic value chain from farm to fork.”

Women at work in processing facility for organic cashew nuts in Brazil

Driving Sustainable Agriculture in Emerging Markets

Organic agriculture offers significant environmental benefits, including improved soil health, increased biodiversity, and the reduction of harmful chemicals, making it a critical component of sustainable development. Sourcing is often done from emerging markets, where many small and medium-sized enterprises struggle to secure affordable working capital. ODF’s tailored financing solutions allow these businesses to meet growing demand, pay fair prices to local farmers, and scale sustainably.

“With this EUR 10 million loan, we’re thrilled to expand our support for companies that are pioneering sustainable, organic agriculture in emerging markets. This commitment from a prominent partner like Invest International is a major milestone in the ODF growth path, showing trust in our investment strategy” said Susie Horth, ODF Chairperson of the Supervisory Board.

A Blended Finance Facility Catalysing Investment

As a blended finance facility, ODF is uniquely structured to leverage both concessional and private funding, creating a bridge for impactful, market-driven investment into high-growth sectors in emerging markets. With support of USAID and GIZ the fund was launched by Tradin Organic in 2020 and has already successfully built a portfolio of over 14 transactions with 8 different companies. By attracting additional funds with a diversified investor base, ODF aims to expand the number of buying partners with which it cooperates and meet the growing demand for sustainable agricultural supply chains worldwide.

Michiel Slootweg, Director of Private Sector, emphasized Invest International’s support for ODF’s commitment to financing small-scale organic farmers in emerging markets and connecting them with Dutch trading companies such as Tradin Organic. “This creates a win-win for all parties in the value chain, driving sustainable growth and strengthening trade links with the Netherlands.”

Managed by FOUNT; a Leading Dutch Impact Fund Manager

ODF is managed by FOUNT, a Dutch impact fund manager known for their dedication to fostering sustainable development in underserved sectors in emerging markets. FOUNT’s experience of working in emerging markets, impact investing, and working in partnerships ensures that ODF’s capital is allocated effectively to generate long-term social and environmental returns.

With the capital provided by Invest International, ODF can scale up its investments in securing a sustainable future for our investees which will have positive, compounded effects along the organic supply chain. We’re extremely pleased with the partnership and excited to continue on our journey for positive impact.” said Bernadette Blom, Founding Partner of FOUNT. “By providing tailored capital solutions to these SMEs in the organic supply chain, we can make a measurable impact on local economies and global sustainability goals, while fostering environmentally friendly practices.”

Empowering Local Communities and Farmers

The importance of organic regenerative farming practices is recognised globally, driven by consumer awareness of health, environmental, and social benefits. However, organic-focused SMEs in emerging markets often face financial barriers that limit their ability to grow and support local farmers. By providing efficiently affordable working capital, and working with multiple international traders, ODF enables these businesses to increase their reach and impact, empowering thousands of smallholder farmers who benefit from reliable market access and fair trade practices.

“At ODF, we believe that fair financing can be transformative for companies in emerging markets,” adds Gemma Verhoeven, ODF Fund Lead. “With this support from Invest International, we’re helping SMEs thrive, protecting the environment, and creating opportunities for smallholder farmers to build sustainable livelihoods.”

About Organic Development Finance (ODF)

ODF, Organic Development Finance, was initiated as a Dutch Foundation by Tradin Organic, supported by USAID West African Trade and Investment Hub and GIZ, Germany’s main development agency, to provide affordable finance to certified organic agricultural companies in low-income and emerging countries. The objective is to enhance local supply chains for organic crops in order to realize environmental and social benefits of organic production.
More information: www.organicdevelopmentfinance.org

About FOUNT

FOUNT is a leading impact investment firm providing Strategic Advisory and Fund and Investment Management services to drive social and environmental impact alongside reasonable financial return in emerging markets. FOUNT is the Fund Advisor of Organic Development Finance. FOUNT is active in various sectors across emerging economies including agriculture, sustainable fashion and clean cooking. Fund and Investment mandates of FOUNT further comprise Agri3 Fund (sustainable agriculture), Good Fashion Fund (sustainable fashion) and BIXCapital (clean cooking). For more information, please visit: www.fount.eu.

For more information, please contact:

Gemma Verhoeven
Fund Lead ODF
Organic Development Finance (ODF)
gemma@organicdevelopmentfinance.org
+31616058286
organicdevelopmentfinance.org


With this partnership Invest International contributes to ODF’s commitment to fostering sustainable economic growth, empowering smallholder farmers, and promoting environmental sustainability. This funding is a major milestone for ODF’s work in building a fair, resilient, and environmentally conscious future.

FOUNT Member Spotlight with Bernadette Blom

June 10th

Check out the latest member spotlight of Convergence Blended Finance, featuring Bernadette Blom, Co-Founder of FOUNT.eu.

Learn about FOUNT’s portfolio of impact funds, their approach to blended finance, how they integrate a gender lens in their work, and more.

Read the full article here

AGRI3 and HSBC India announce Partnership Agreement

May 8th

AGRI3 Fund is delighted to announce the recent signing of a Partnership Agreement with HSBC India for agri financing, commencing with a partial guarantee for a USD 50 million MFI lending program.

Under this Agreement, AGRI3 will provide partial guarantees to HSBC for transactions that have a positive impact on sustainable agriculture, rural livelihoods, and forest protection. In addition to the signing ceremony, HSBC hosted a roundtable event where MFI clients of the bank were invited to discuss sustainability challenges and opportunities.

Read the full article here

Responsible Commodities Facility (RCF) won Environmental Finance ‘Impact initiative of the year: Latin America and Caribbean’ award

January 8th

The RCF was launched in August 2022 with an initial investment of USD 11m by Tesco, Sainsbury’s, and Waitrose & Partners. For the 2023/24 growing season, the RCF Cerrado Programme expanded with an investment of USD 36.24 million from commercial banks Santander, Rabobank, and a guarantee from the AGRI3 Fund, thereby leveraging the impact of the initial investment made by the food retailers.

Read the full article here

BIX Capital recognised as a “major fund” in clean cooking sector in Clean Cooking Alliance (CCA)’s new magazine

November 8th

While gender-lens investment has been slow to grow, a promising upward trend could be a game-changer for the clean cooking sector. Major funds, including the Global Innovation Fund, Denmark’s Investment Fund for Developing Countries, and BIX Capital, are applying a gender lens in the investment process and investing in clean cooking.

Read the full story here 👉 bit.ly/45YGfxT

Founding Partner Bernadette Blom selected for Top 50 Women in Sustainable Finance in the Netherlands

October 2nd

TOP 50 Women in Sustainable Finance!

We are honoured that our Founding Partner Bernadette Blom is selected as one of the Top 50 female leaders in the Netherlands committed to sustainability in the financial sector by WIFS (the Netherlands) – for the second year in a row.

The women included in the Top 50 are committed to increase sustainability within the financial sector and have demonstrable visibility and impact on this topic. This includes all facets of sustainability, in line with the Sustainable Development Goals of the United Nations.

Congratulations to everyone included in the WIFS Top 50 – 2023!

Read the full article here

10 YEARS FOUNT!

September 22nd

FOUNT.eu was established 10 years ago by its founders Bob Assenberg and Bernadette Blom. Last week we celebrated this 10-year anniversary with the FOUNT team in Maastricht.

We started off as a strategic advisory firm focusing on impact investing in emerging markets and during the initial years we supported and advised numerous clients generating impact. Gradually we also became involved in fund & investment management activities initially managing and restructuring the affordable housing portfolio in emerging markets of DIGH.

Today we manage a portfolio of impact funds: BIX Capital (pre financing impact receivables in Sub Sahara Africa) Good Fashion Fund (sustainable fashion) AGRI3 Fund (sustainable agriculture & forest protection) and Organic Development Finance (ODF) (affordable finance for organic agri-producers).

We would like to thank all our clients, investors, stakeholders, team members and partners for your trust and contribution to this beautiful journey.

We are proud and happy and will continue to make an impact for many years to come.

Good Fashion Fund makes new investments in India and Bangladesh

August 1st

AMSTERDAM – The platform Impact-Investor.com published an article on The Good Fashion Fund (GFF), announcing the completion of two new investments, including its first investment in Bangladesh and its second in India.

Fund managers Fount have invested in Indian ready-made garment manufacturer Progress Apparels and Bangladeshi cotton yarn and denim fabric producer Sri Kannapiran Mills.

Read the full article here

Organic Development Finance Fund partners with FOUNT

August 1st

Organic Development Finance (ODF) and FOUNT are proud to announce their partnership for the scaling of ODF. ODF provides affordable finance to high-potential organic agricultural companies in low-income and emerging countries to increase organic production and achieve sustainable impact for the environment and small holder farmers. By providing finance combined with targeted technical assistance, the ODF catalyses equitable supply chains with high organic integrity,

Read the press release here

AGRI3 Fund Transforming Sustainable Cattle Farming in Brazil

June 27th

As the global food system needs to scale up production to feed a rapidly growing population, while reducing its carbon footprint, preventing deforestation and restoring ecosystems to meet global climate, biodiversity and land degradation targets. The AGRI3 Fund is strongly aiming to address these challenges by seeking to finance sustainable agricultural practices. The UN environment programme wrote a newsletter on AGRI3’s practices and how it aims to transform sustainable cattle farming.

Read the article here