Project detail - NEW FORESTS TROPICAL ASIA FOREST FU

NEW FORESTS TROPICAL ASIA FOREST FU

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Who is our client

A decline in natural forest timber supply and a need for sustainably managed timber plantations led to the establishment of the Tropical Asia Forest Fund (TAFF). TAFF is a EUR 76 mln private equity fund managed by Australian-based fund manager New Forests Pty Limited, an experienced fund manager in sustainable forestry and associated environmental markets.

Funding objective

TAFF intends to introduce best in class management systems and modern forestry practices to hardwood timber plantations and environmental assets that are often poorly managed or abandoned. The fund will target FSC certification for its projects and will drive the protection and improvement of existing forest ecosystems.

Why we fund this project

This projects meets the objectives of FMO’s climate change focus. The investment in TAFF supports an ambitious initiative in a new asset class in the Asia-Pacific region that should reduce the pressure on clearing standing forests and contribute generously to the reduction of CO2 emissions.

Region
Asia
Country
Asia
Sector
Infrastructure, Manufacturing and Services
Signing date
6/8/2012
Total FMO financing
USD 12.87 MLN
Fund
Building Prospects
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A