FMO, British International Investment, Proparco, the Dutch, British and French development finance institutions respectively and ILX, the Dutch fund manager, today announced the signing of a working capital facility of up to USD 90 million for Robust International (Robust), a leading agri-commodity trader.
FMO acted as the lead arranger for syndicate members BII, Proparco, and ILX to jointly provide catalytic funds to Robust. The capital will support sustainable growth of the agricultural sector and create better economic opportunities for smallholder farmers in Africa.
Founded in 2006 and headquartered in Singapore, Robust is a multi-national trader of agri-commodities, specializing in sesame and cashew nuts. Sourcing primarily from East and West Africa, Robust conducts early-stage processing operations to serve markets worldwide. The company is evolving from traditional trading and processing to becoming an end-to-end integrated supply chain company.
These working capital funds will enable Robust to buy sesame and cashew nuts directly from cooperatives, aggregators and farmers locally to support operations at its new processing facilities1 in Burkina Faso, Ivory Coast, and Mozambique.
This investment will contribute to economic growth in the three countries by adding value to the local supply chain. It is expected to create over 1,100 direct jobs at the plants supporting up to 600,000 smallholder farmers to improve their incomes through competitive sourcing. It will significantly increase Robust’s engagement with agricultural stakeholders in Africa, thereby supporting agricultural exports.
This initiative highlights the strong partnerships among Development Finance Institutions (DFIs) and impact investors, which were crucial in making this transaction possible. They are providing long-term working capital, which is not readily available from commercial sources, demonstrating DFIs’ ability to mobilize much needed private capital.
The collaboration between FMO, BII, Proparco, and ILX exemplifies the power of joint efforts in driving sustainable development and economic growth. By enhancing processing capabilities and integrating the supply chain, Robust will drive substantial economic growth and development in the region.
The Sustainable Development Goals involved are related to job creation (SDG 8), and reducing inequalities SDG 10).
"We are happy to lead this significant investment in Robust International, which will not only enhance their processing capabilities but also create substantial economic opportunities for farmers in Africa. This partnership underscores our commitment to sustainable development and the positive impact we can achieve through collaboration." – Michael Jongeneel, CEO of FMO.
Chris Chijiutomi, Managing Director and Head of Africa, at BII: “Agriculture is the lifeblood of Africa’s economies and it is critical for us to ensure inclusion particularly for the smallholder farmers. We are delighted to join FMO, Proparco and ILX in mobilizing investments into the agricultural sector. This will attract US dollar liquidity from agricultural exports, providing the vital boost needed to fuel these countries’ long-term economic growth.”
The deal was signed at the Robust headquarters in Singapore, with Anand Patni (Robust Group Chief Financial Officer), Tom Groot Haar (Netherlands Embassy Secretary for Economic Affairs), Vishanth Narayan (Robust Group Executive Director), Bas Rekvelt, (FMO Principal Investment Officer), Naarayan Raaghavan (Robust Chairman and Managing Director), Ammarens Bruggenkamp (FMO Manager Asia Team), Srini Nagarajan (BII Managing Director and Head of Asia), Abhishek Narayan (Robust Director), Prashant Shukla (Robust Finance Manager).
British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn and X.
Proparco is a subsidiary of the AFD Group focused on private sector development. It has been promoting sustainable economic, social and environmental development for over 45 years.
Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle-East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education. Its operations aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015.To this end, Proparco finances companies whose activity contributes to creating jobs and decent incomes, providing essential goods and services and combating climate change.
ILX is an Amsterdam-based asset manager specializing in global development finance co-investment strategies. It primarily focuses on UN Sustainable Development Goals (SDGs) and Climate Finance in Emerging Markets, and it is driven by a diversified, long-term, and impactful investment approach. This approach is underpinned by strong partnerships with global Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) and centres around B-loan participations in SDG-aligned investments, particularly within the realm of Climate Finance. ILX Management B.V. is licensed under the Dutch Act on financial supervision (Wet op het Financieel toezicht – Wft) with licence number 15004635. ILX Fund I and ILX Fund II are registered funds with the AFM.
