FMO, British International Investment (BII), BIO, DEG and PROPARCO, the Dutch, British, Belgian, German, and French Development Finance Institutions (together the “DFIs”) respectively, have partnered to provide a long-term working capital facility of USD 155 million to ECOM Agroindustrial Corp. Ltd (“ECOM”) a global leader in sustainable coffee, cocoa, and cotton sourcing and trading, with FMO as Mandated Lead Arranger of this syndicated, seven-year facility.
The facility aims to support ECOM’s operations and investments throughout the supply chain in origin markets including Africa, by financing its working capital needs in light of continued high and volatile cocoa and coffee prices.
ECOM is a family-owned, global leader in the integrated physical supply chain, operating across 40 producing countries. The company is a world-leading soft commodity services group specializing in coffee, cocoa and cotton. With a global commercial presence, ECOM sources from over 20 origins and serves over 85 sales destinations. Headquartered in Switzerland, ECOM brings more than 175 years of expertise, a strong reputation, and a deep commitment to sustainability.
ECOM partners with over 500,000 smallholder farmers, to foster sustainable and inclusive supply chains that create significant social and economic impact. Through its dedicated Sustainability Management Services division, ECOM provides essential financing for replenishing older coffee tree stocks, agri-nutrition products, as well as offers farmers capacity building and training to improve yields. By focusing on traceable, certified supplies of cocoa, coffee, and cotton, ECOM further enhances farmers' livelihoods, contributing to sustainable agricultural practices and economic growth.
Over the past decade, ECOM’s growth has been backed by its commitment to sustainability (SDG13) and inclusivity (SDG10), values that align with the missions of the participating DFIs. This transaction is an example of the strength of partnerships for economic development between the DFIs involved.
In addition, the company’s scale and impact ambitions fit well with FMO’s strategy around SDG 10 and SDG 17. FMO has played a key role in supporting ECOM’s growth and impact ambition, by providing multiple facilities over the past 13 years including leading 3 DFI syndicates (2012, 2014 and 2020) and providing subordinated debt financing (2016, 2018 and 2025).
“We are very excited to continue our partnership with ECOM. This facility is a testament to the dedication of DFIs to mobilize capital for critical commodities in key origins markets in a way that supports smallholder farmers in the background of unprecedented price developments. We look forward to continuing the strong and longstanding relationship we have with ECOM.” Hans Boogaard, FMO Director of Agriculture, Food and Forestry.
"We are pleased to support ECOM alongside our DFI partners. This funding will help strengthen sustainable agricultural value chains and improve the livelihoods of smallholder farmers, particularly in Ghana and Côte d'Ivoire. By supporting businesses that bring in foreign exchange through agricultural exports, we aim to foster resilient and sustainable economic growth in Africa," said Kwabena Asante-Poku, Country Director for Ghana and Côte d'Ivoire at British International Investment.
“BIO is proud to join FMO, BII, DEG and PROPARCO to mobilize investments in agricultural value chain development. BIO’s investment focuses specifically on sustainable cocoa sourcing in Côte d’Ivoire; ECOM is considered a pioneer in this segment, with a strong field presence and extensive support to smallholder farmers.“ Carole Maman, Chief Investment Officer of BIO.
“We are pleased to continue our longstanding partnership with ECOM via this transaction and appreciate the proven cooperation among the DFIs. As an impact investor DEG focuses on projects which contribute to better living conditions for local people. The project will provide thousands of smallholder farmers of which more than 20% are women with a reliable income. With ECOM’s support farmers learn about more efficient production methods and improve their resilience to climate change.” Rena Terfruechte, Head of DEG’s department Industries & Services Debt, Africa & EMECA commented.
“We are thrilled to participate with our partners in this transaction, strengthening our relationship with ECOM, a key supporter of thousands of smallholders in developing countries. Financing ECOM underscores Proparco’s commitment to reinforcing sustainable agricultural value chains, encompassing environmentally responsible practices, economic and social inclusion”, Reza Hassam Daya, Head of the Industry, Agriculture and Services Division at PROPARCO.
“We’re proud to join forces with the FMO and other European DFIs to drive sustainable growth and empower farming communities. Our deep roots in agricultural value chains and commitment to innovation align perfectly with our mission to enable inclusive development. Together, we can scale impact where it matters most.” Benjamin Rimaud, Group Environmental and Social Manager at ECOM
This facility will support ECOM’s role in helping transform rural economies by supporting smallholder farmers across key producing regions. ECOM partners with over 500,000 smallholder farmers, helping foster inclusive supply chains that seek to create social and economic impact. Over the past decades, ECOM’s growth has been backed by its inclusive model and commitment to sustainability (SDG13) and inclusivity (SDG10), values that align with the missions of the participating DFIs. The transaction is 100% Reduced Inequalities label and partially green label approved.
By continuing this partnership, the DFIs will help ECOM further advance and continue its work with inclusive supply chains and support its long-term sustainability goals, reinforcing the commitment to sustainable business practices in producing communities.
