Project detail - EcoEnterprises Partners III, L.P.

EcoEnterprises Partners III, L.P.

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Who is our client

EcoEnterprises Partners III is an investment fund that offers tailored growth capital and strategic guidance to innovative impact businesses operating in Latin America in order to scale and optimize their financial, environmental and social performance.

Funding objective

EcoEnterprises Partners III will invest in compelling, scalable small businesses that actively contribute to the creation of sustainable livelihoods, the sustainable use and conservation of natural resources, the preservation of vulnerable eco-systems and bio-diverse working landscapes, and the mitigation of climate risks.

Why we fund this project

The intended investment in EcoEnterprises Partners III is a strong fit with FMO's investment strategy, as the Fund’s objectives are to empower local entrepreneurs and their communities, to reduce inequalities, and to preserve our most important asset: Planet Earth.

Environmental and social rationale

The environmental and social category is A for EcoEnterprises Partners III, since the Fund invests in smaller agricultural companies, some with outgrower schemes and some making use of wild harvesting. Due to the size of the companies and setup of the sourcing of product, there are relatively low levels of mechanization and hence more manual labor. As a result, PS 1, 2, 4 and 6 are triggered, and in isolated instances PS 5. EcoEnterprises Partners III has an Environmental and Social Management System (ESMS) in place which has proven strong and effective in managing E&S risks in past investments. FMO will play a supporting role in further enhancing the ESMS to make it state-of-art in all aspects. The fact that investments will be certified and compliant with IFC PS, alongside FMO’s monitoring scheme, provides additional comfort that environmental and social risks will be well managed.

Region
Latin America & The Caribbean
Country
Latin America & The Caribbean
Sector
Agribusiness, Food & Water
Signing date
5/11/2018
Total FMO financing
USD 7.50 MLN
Fund
Infrastructure Development Fund
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